Title: Fuzzy Logic and Panel Logistic Models for EU Smart Specialisation Strategies
Citation: The Journal of American Business Review vol. 1 no. 2 p. 173-180
Publisher: Journal of American Academy of Business
Publication Year: 2013
JRC N°: JRC85300
ISSN: 2167-0803
URI: http://www.jaabc.com/jabrcv1n2preview.html
Type: Articles in periodicals and books
Abstract: Based on a fuzzy logic and a panel logistic model, the models suggest 10 configurations (contexts) of sectoral specialisation of the EU regions, the most specialised regions being: Oost Nederland, Ouest FR, Saarland, Sachsen Anhalt, Schleswig Holstein, Thuringen, and Zuid Nederland; and various specialised sectors ranging from: Construction, Electricity gas and water supply, Manufacture of electrical and optical equipment, Real estate renting and business activities, and others. The Sectoral Specialisation of the EU regions was calculated with the Revealed Comparative Advantage method, capturing the degree to which a given region employs its economically active population (EAP). The results suggest that, for a region, to specialise in any given sector there are two ‘necessary conditions’. Firstly, the sector had to invest heavily in tangible goods (assets), and second, the region had to increase the shares of high and medium-high tech manufacturing employment. Moreover, the results show that the apparent labour productivity of the specialised regions did not have to be higher than the rest of the EU regions. It was also found that high specialisation emerged mostly among regions with high disposable income per capita, and this happens more often not among the largest EU regions. The panel logistic model shows that smart specialisation strategies targeting R&D intensity and R&D personnel at regional levels are potentially useful tools for regional de-specialisation and specialisation, correspondingly. The model is corroborated with the description of two contrasting cases (regions), one specialised and other de-specialised.
JRC Directorate:Growth and Innovation

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