Directions for improving smart-specialization strategy of the regions of Ukraine from the positions of schumpertianity, institutionalism, and developmentalism

Abstract

Smart specialization is one of the key modern economic policies implemented in the European Union. Its essence is to ensure innovative development depending on a specific region's existing conditions and features. Smart specialization is aimed at ensuring the regional development of the countries that are part of the European Union and those countries that have a cooperation agreement with it. This tool involves taking into account the peculiarities and capabilities of each region and identifying competitive advantages, which helps to unlock economic potential and more effectively develop innovations at the regional level. Smart specialization aims to: (1) identify the most promising investment areas through a thorough analysis of existing opportunities, assets, competencies, and competitive advantages of the region; (2) more efficient spending of state resources by concentrating on the main industries of a certain region; (3) elimination of duplication of measures that may lead to waste of public resources; (4) implementation of mechanisms that ensure strategic development based on multilateral interaction. The purpose of the study is to determine directions for improving the strategizing of smart specialization in the regions of Ukraine from the standpoint of Schumpeterianism, institutionalism, and developmentalism. The theoretical provisions of ensuring the smart specialization of Ukraine's regional development process in practice face several problems that can be systematized and solved from the positions of different schools of economic theory at the regional and national levels. From the standpoint of the Schumpeterian school of economic theory, the priority direction for improving the smart specialization strategy of the regions of Ukraine is to combine innovation policy with regional smart specialization strategies, as well as the creation of innovative infrastructure to support smart specialization. From the standpoint of the institutional school of economic theory, the priority direction for improving the strategizing of smart specialization in the regions of Ukraine is the systematic alignment of institutions with the goals of smart specialization, the harmonization of the regulatory and legal framework for ensuring innovative activity and strategizing regional development, as well as the elimination of institutional deficiencies in the formulation of strategic documents at the state and at the regional level, which prevent the application of the principles of smart specialization. From the standpoint of the developmental school of economic theory, the priority direction for improving the strategy of smart specialization in Ukraine’s regions is improving economic policy at the national level in the area of stimulating high-tech exports.