Regional Governance Challenges in Implementing EU Smart Specialization Policy: A Critical Review

Abstract

This review paper has three main objectives: first, to examine the governance challenges associated with the implementation of smart specialization policies in different EU regions; second, to examine the governance challenges faced by weaker regions; and third, to explore specific governance approaches to address these challenges. A systematic literature review was conducted to analyze the most relevant studies, extract critical findings, and derive lessons and practical policy recommendations. The review identified two key challenges in the governance of smart specialization policies, namely stakeholder engagement and institutional readiness. These challenges are common in most EU regions and are more critical in weaker regions. Further analysis reveals specific governance approaches that can address these challenges, with some literature explicitly linking these approaches to multilevel governance. Given the gaps identified in the existing literature, this paper aims to lay the groundwork for future research to explore these governance approaches in the context of smart specialization policies in EU regions and, more specifically, in weaker regions. Highlights • Implementing smart specialization in EU regions remains challenging. • Stakeholder engagement and institutional readiness are crucial for S3 governance. • A more specific approach to S3 governance is highly encouraged.

Keywords

• regional governance
• challenges
• innovation policy
• smart specialization
• European Union