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Combining technological relatedness and sectoral specialization for improving prioritization in Smart Specialisation

ABSTRACT Relatedness is a popular concept for regional branching within Smart Specialisation. However, this proximity-network approach misses its regional perspective, making difficult its operationalization in regional policies. This paper advances the regional perspective of relatedness for improving prioritization in Smart Specialisation by combining the concepts of technological relatedness and sectoral specialization. Using a four-stage methodology, we reveal potential Smart Specialisation priorities for a set of 16 European regions considering both cognitive links arising through technological relatedness and their regional structures. The proposed methodology reduces the stress of regional stakeholders participating in entrepreneurial discovery processes by providing a narrower set of priorities.