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Complementary Inter-Regional Linkages and Smart Specialization: an Empirical Study on European Regions

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  • Pierre-Alexandre Balland
  • Ron Boschma

Abstract

Regional capabilities are regarded a pillar of Smart Specialization Strategy (S3). There is yet little focus in S3 policy on the role of inter-regional linkages. Our study on 292 NUTS2 regions in Europe finds that inter-regional linkages have a positive effect on the probability of regions to diversify, especially in peripheral regions. What matters is not being connected to other regions per se but being connected to regions that provide complementary capabilities. Finally, we propose a new indicator that enables regions to identify other regions as strategic partners in their S3 policy, depending on the presence of complementary capabilities in other regions.

Suggested Citation

  • Pierre-Alexandre Balland & Ron Boschma, 2020. "Complementary Inter-Regional Linkages and Smart Specialization: an Empirical Study on European Regions," Papers in Evolutionary Economic Geography (PEEG) 2023, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2020.
    • Handle: RePEc:egu:wpaper:2023
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    More about this item

    Keywords

    Smart Specialization; relatedness; inter-regional linkages; regional diversification; complementary capabilities;
    All these keywords.

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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