Innovation and Development after Transition. The Case Study of Gorizia Region, Slovenia

Central and Eastern Europe’s transition to a market economy was not homogeneous. It led to many developmental paths available for its regions. The study aims to see the results of this process and describe the contemporaneous innovation status and struggles. The analysis considered Gorizia (Slovenia) as an example of a non-capital region close to the European developmental average. Based on data collected through an expert focus group organised with local stakeholders, the research revealed that Gorizia’s innovation process relies on endogenous and exogenous forces. The region reconstituted the economy from big producers into multiple smaller companies. Their integration into the global production chains proved essential in the transition and further development. This allowed for overcoming the issue of limited local and national resources, market size, and demand.Similarly, it has widened regional stakeholders’ perspectives and contributed to local clusters’ development. Thus, the Regional Innovation System is heavily oriented toward foreign collaboration, especially with Italian partners. Local institutions and organisations are responsible for implementing the most significant projects within the region. Their susceptibility to the needs of the private sector strengthens the entrepreneurial origins of the innovation process. Gorizia’s innovation performance positively influences its competitive position. The value chain Flagships and original manufacturers show interest in local innovation. It is seen through the acquisition of Intellectual Property or parts of the companies to utilise in their production and innovation processes.