Concept of Smart Specialization as a Strategy for Sustainable Regional Development

The subject of this paper is a review of previous research on smart specialization as a concept which is one of the strategies for sustainable development of regions. Innovations are considered as one of the key drivers of growth. Recognition of innovation which was central point of strategy ‘Europe 2020’ where ‘smart specialization’ needs to make possible for the regions and countries pursue those industries in which they hold a comparative advantage and which have basis for further innovations. The main purpose of this paper is defining smart specialization and its role on the regional development. Analysis and comparison of the scientific literature and applications of smart specialization were used as methods for this paper. The main findings of this paper show that the basis of smart specialization are innovation, knowledge and research which are pillars of smart, sustainable development. Smart specialization means identifying the unique characteristics and potential of each country and region, with the aim of achieving competitive advantages and excellence. It also includes strengthening regional innovation systems, increasing knowledge exchange and spillover the benefits of innovation throughout the regional economy. By comparison method of the scientific literature this paper will contribute to the development of theoretical background of smart specialization as a strategic concept formed by a group of European Union experts with the aim of reducing the gap in competitiveness between the European Union and the United States, which arises from the lower economic and technological specialization of European countries, especially at the regional level. Also it will promote smart specialization as a concept that can contribute to strengthening regional innovation policy and regional development.