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Hugo Hollanders and Monika Matusiak

The chapter presents a method to identify smart specialisation priority domains through an economic analysis that is able to highlight economic specialisations using detailed industry-level data on employment, value added, wages and exports. A second step involves the identification of the innovation potential of these preliminary priority domains by implementing an innovation potential mapping exercise. Mapping the innovation potential of regions should move from a generic and horizontal view of innovativeness, embodied in questions such as: ‘What is the share of innovative companies in the national/regional economy?’, to a more granular picture.