Smart specialization driving globalization of small and middle-sized companies in the Finnish region of Ostrobothnia

Abstract

The article highlights five challenges in learning Smart Specialization: First, regional governance means to make difficult decisions in a number of fields which are at the core of economic development, welfare and human well-being. Allocation of resources has to be done in a transparent way, which creates legitimacy. At the same time, Smart Specialisation calls for regions to prioritize and be pro-active in promoting explorative and experimental strategies of growth. Secondly, experimentation means to work for co-evolution between analysis, partnering and integration of stakeholders into work plans and pilot actions. Third, experimentalist approaches can benefit from transnational learning from other regions. Fourth, it means to dive into complexity and dynamics surrounding the entrepreneurial discovery process and the innovation ecosystems, as well as fifth, to manage multi-level governance and interactions with national policies. This learning has led to a new understanding of the challenges of the regional innovation ecosystem, and a smart strategy. In this strategy small and medium sized businesses are seen as core actors in diversifying the regional export base. Furthermore, establishing policy instruments fostering regional connectivity and building new export-oriented value chains, where SMEs are enabled to collaborate with focal large enterprises constitute key outcomes of the strategy.