Local authorities receiving structural funds must be in reasonable shape if regions are to gain from the European Commission’s smart specialisation strategy, according to a study.
The success of smart specialisation, under which structural funds are dispersed according to a region’s strengths in innovation, hinges on good legal frameworks and efficient administration, the study found. Even relatively small improvements in governance quality can lead to significant gains in regional innovative performance, it said.
The study, The Role of Government Institutions for Smart Specialisation, was undertaken for the Commission’s Joint Research Centre, which delivers scientific advice to commissioners. The analysis measured how public institutional performance affects innovation output.
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