Smart Specializations from the Standpoint of Leading Schools of Economic Theory

Abstract

Focus on smart specialization is a key element of regional development strategizing in Ukraine, which, for example, is reflected in the State Regional Development Strategy for 2021-2027. But a comparative analysis of individual indicators of the economic development of the EU, the USA and China shows that smart specialization itself is not a competitive advantage on a global scale. At the same time, the researchers note that there is a gap between the theory and the practice of strategizing on the basis of smart specialization. Although theoretical issues related to smart specialization are not overlooked by researchers, the direct understanding of smart specialization processes from the standpoint of specific schools of economic theory is extremely limited. Therefore, the goal of the study is to reduce the essence of the concept of smart specialization from the standpoint of leading schools of economic theory. For the analysis, a classification was chosen, according to which 9 schools of economic theory are distinguished: (1) Classical, (2) Neoclassical, (3) Marxist, (4) Developmentalist, (5) Austrian, (6) Schumpeterian, (7) Keynesian, (8) Institutionalist, (9) Behaviouralist. Of the nine considered leading schools of economic theory, almost half of the schools (Classical, Developmentalist, Schumpeterian, and Institutionalist) significantly influenced the formation of the essence of smart specialization. Smart specialization has been moderately influenced by Neoclassical, Marxist and Keynesian schools. Austrian and Behaviouralist schools are characterized by a slight influence on smart specialization. Thus, smart specialization to a significant or moderate degree corresponds to individual provisions of 7 out of the 9 leading schools of economic theory considered in this study. Smart specialization synthesizes the positions of different schools of economic theory. Two alternatives follow from this: either the concept of smart specialization is a “constructive” tool for combining the “best” practices of various schools of economic theory, or it is an eclectic combination of ideas that are fundamentally incompatible. An unambiguous solution to this dilemma is possible on a practical level in the long term. Keywords smart specialization, schools of economic theory, definition, reduction.