Assessing the Regional Innovation System’s Absorptive Capacity: The Approach of a Smart Region in a Small Country

Abstract

Vitality of a smart region depends on the network of closely interconnected actors (individuals and institutions) seeking common goals of development and their capacities to ensure effective knowledge creation and exploitation. This network (a regional innovation system (RIS)) empowers processes of absorptive capacity-knowledge access, anchoring and diffusion, contributing to regional innovativeness and competitiveness. Absorptive capacity is considered an important object of scientific research. However, there is still a lack of research providing specific tools that are adaptable for assessing the regional absorptive capacity in a small country. Existing differences among countries and even regions inside a small country require adjusted and modified methods and instruments. Consequently, the goal of this research is to present and substantiate the methodological approach of assessing the RIS's absorptive capacity giving evidence from a smart region (Kaunas County) of a small country (Lithuania). The mixed-method approach of the research (combining qualitative and quantitative research strategies) was used to substantiate the presented methodological approach. A smart region of a small country can be characterized by a denser institutional infrastructure and higher results (outcomes) of innovative activities. Smartness of the region can be understood as a consequence of the higher level of absorptive capacity.

Assessment of Smart Technologies in Regional Innovation Systems: A Novel Methodological Approach to the Regionalisation of National Indicators

“…The concept of regional innovation systems (RIS) does not have a generally accepted definition [20], but a broad definition usually includes all interrelated institutional actors that create, diffuse, and exploit innovations in a specific geographical region [21], and all of which impact the RIS's performance in producing innovation [22]. The concept of the RIS represents a shift from a linear perception of innovation that was dominant until the 1980s towards a systems theory in which investments in research and development (R&D) cannot stimulate economic growth unless they are appropriated by the different actors of the system to produce meaningful innovation [23].…”

Making the smart region transition

“…Smart region as a concept and part of national policy is fast emerging. Smart regions provide attention to urban and nonurban areas by design [14][15]. Like rurality, there is no single definition to smart region.…”

Smart specialization and sustainable regional growth

“…It aims to reorganise traditional sectors by shifting to value-added sectors such as energy, transport, infrastructure, tourism, agriculture and tourism. The use of the region's human, structural and relationship capital is crucial, and the intelligent specialisation of the regional economy as a whole contributes to this process [5,6] Attracted by European Union to more research and development, a more integrated regional innovation ecosystem is needed, with a focus on smart specialisation in the region. The European Commission's Smart Specialization Strategy for the European Union (ESM) envisages smart specialization as a key component of the European Union's transformation agenda.…”