ABSTRACT

To properly understand and successfully implement S3, it is important therefore to better understand the persistence of industrial specialisations across regions, and how they can be influenced to successfully promote structural change (Boschma & Gianelle, 2014; Foray & Goenaga, 2013). Finally, it is necessary to understand whether there are differences in how these mechanisms operate across regions with different levels of economic development, and especially the LFRs. This chapter examines these questions empirically. It analyses the relationships between different channels of knowledge generation and transmission and the development of industrial specialisations at the regional level across the 28 EU countries (as of 2018). It relies on a regional industry structure matrix to break down sectoral and country-specific indicators to the regional level for these 28 countries and distinguishes between different levels of economic development.