Regional innovation systems in EU-10: A typology and policy recommendations

Abstract

This paper depicts a typology of regions, capturing the diversity of regional innovation systems across the EU-10 (the enlargement member States). Following the Regional Innovation Systems (RIS) literature, our research selects 21 variables related to the ability of a region to generate and absorb knowledge, and its capacity to transform R&D into innovation and economic growth. Based on the results of principal components and cluster analyses, we identify 3 types of regional innovation systems where regions group together according to their sectoral specialisation, technological and economic capacity, and performance. For each group a number of policy recommendations are suggested, contingent to their local-specific characteristics. Moreover, the paper allows us to identify similar and more advanced regions so as to facilitate comparisons and benchmarking between homogeneous regions, thus enabling more accurate policy learning. In short the contribution of this paper is twofold. In the first place it provides the first RIS typology for the EU-10 regions completed using a large number of variables. Secondly, the conclusions obtained from the analysis may be used to lead policymakers' actions in the field of regional innovation policy in the EU 10, which groups the less developed countries in the European Union from the economic and technological points of view. Moreover, policy implications in this paper could give certain insights useful to policy makers in other parts of the world (always with a need to adapt them and take into account local social and economic conditions, institutions and development paths).