Premium
Economic impact modelling of smart specialization policy: Which industries should prioritization target?
Author(s) -
Varga Attila,
Szabó Norbert,
Sebestyén Tamás
Publication year - 2020
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/pirs.12529
Subject(s) - prioritization , economic impact analysis , order (exchange) , process (computing) , macro , economic model , cover (algebra) , economics , environmental economics , impact assessment , computer science , management science , macroeconomics , microeconomics , political science , engineering , mechanical engineering , finance , public administration , programming language , operating system
Abstract In this paper we argue that it is necessary to apply economic impact models in smart specialization policy in order to come up with reliable economic impact estimations. Solutions suggested in the smart specialization (S3) literature for economic impact assessments cover the economic effects only partially. To estimate the impacts in the industrial, regional and national dimensions in their entirety the application of specifically designed economic models becomes necessary. We extended the geographic macro and regional (GMR)‐Hungary policy impact model with additional features to make this model applicable for S3 economic impact estimations. In our policy simulations we illustrate how the application of this model helps policy‐makers in the prioritization process.