Clusters and Smart Specialization: Are they the Effective Strategy for Enhancing Regional and Institutional Competitiveness?

Abstract

Currently nations and regions are under stressed to enhance competitiveness as well as to maintain its sustainability to fit with the Horizon 2020 programme. The present debate on regional innovation systems, research and development strategy represents one of the most common policy approaches to address the strains between globalization and localization. This paper discusses the idea of clusters and smart specialization strategy as an effective tool for improving regional and institutional competiveness; in order to highlight the significance of linking different firms, people, and knowledge at a regional level- are one of the ways of making regions, institutions more innovative and competitive. For e.g. universities can stimulate the entrepreneurial spirit of their staff and students, by offering guidance and services in a coherent manner with business needs. This paper tries to identify why should clusters be part of smart specialization? In this regard, the smart specialization concept was used as the leading concept for formulating strategic goals and measures related to regional economic development. Finally, the outcome of this study shows clusters are powerful instruments to foster industrial competitiveness, institutional innovation and province growth due to their intrinsic competence. Therefore, they were used by policy makers worldwide as building blocks for implementing different policies such as research & innovation, industrial and regional policies.