Addressing Public Policy Implementation Challenges in Lagging Regions Through the Analytical Lens of Smart Specialisation

Smart Specialisation Strategy (S3) research has contributed to better understanding of that policy framework’s conceptual underpinnings but some European regions still find it difficult turn S3 theory into implementation. A key element the implementation challenge concerns enabling or constraining role local institutions on regional development strategies and, more specifically, entrepreneurial discovery process (EDP). Such a appears be particularly acute (and empirically unexplored) in lagging regions, characterised by weaker knowledge bases and innovation capacities. It is often less advanced settings where are found. This paper addresses these gaps investigating focusing dynamic interdependence between institutional environment EDP. evidences how particular features hinder EDP, as well change could enable two Greek regions. Our results reveal mutual inadequate weak administrative capacities, creating adverse pre-conditions for They also suggest requires replacement existing creation new ones, rather than gradual adaptation transformation.