Knowledge Economy and Regional Innovation Policy Milieu

The emergence of the knowledge economy has resulted in a new definition of regional policy milieu. Under the current EU policy framework the concepts of region and city are the result of an inductive, exploratory cognitive process. Interpreting, assessing and designing successful territorial milieux constitute a methodological challenge for analysts. This paper discusses the methodological capacity of a hybrid theoretical approach to discovery and design of smart specialization. Analysis of strategic network formation (why the network takes a particular form) demonstrates the competitive positioning of specific homogeneous communities within the global value chain and can be considered central to the regional policy milieu.