Enhancing Smart Specialisation Strategies (S3) for innovation and growth in the EU

How effectively are Europe’s regions implementing their S3 strategies today, and what role do they play in driving innovation, industrial transformation, and digitalisation?

For the European Commission’s Directorate‑General for Regional and Urban Policy (DG REGIO), the project team assessed the status and effectiveness of S3 implementation in the 2021-2027 period. The aim of the study was to gain a better understanding of regional implementation practices, achieved impacts, and remaining challenges.

Key findings

• S3 as a dynamic policy framework for research, innovation and industry: Our EU‑wide survey shows that 66 percent of respondents regard S3 as the central framework for research and innovation policy in their region or Member State. Beyond funding allocation, S3 provides strategic guidance for investment decisions and strengthens regional innovation ecosystems.
• Strategic and focused priority setting: Across 171 national and regional S3 strategies, 1,064 specific priority areas were identified – an average of six priorities per strategy. These priorities link technological or sectoral strengths with overarching transformation objectives and societal challenges. S3 thus functions as an integrated policy mix for competitiveness, digitalisation and the green transition.
• Strong alignment with European technology and transformation objectives: All regions have defined at least one priority related to the green and/or digital transformation. Eighty‑four percent of all priorities are aligned with STEP technology domains. Regions frequently combine digital technologies, resource‑efficient solutions and biotechnology to advance the twin transition.
• Implementation through a broad range of policy instruments: Text‑mining analyses of 183 ERDF programmes identified more than 1,600 S3‑related policy measures. In addition to research and innovation, these measures support industrial modernisation, SME competitiveness, skills development and the green transition. In 51 percent of programmes, S3 extends beyond the traditional R&I context.
• Regional governance as a strength – with a strong focus on cooperation: Out of 171 strategies, 150 are fully regionally based. All S3 strategies and ERDF programmes emphasise interregional cooperation. In practice, however, limited staff capacity, challenges in project development and access to funding continue to constrain cooperation efforts.

Policy implications

Maintaining a balanced approach between vertical and horizontal priorities is essential. This requires strong institutional capacities and structured stakeholder engagement. Interregional cooperation can only succeed if actors have sufficient autonomy and operational scope. Reforms should be tailored to specific regional contexts and embedded in a clear strategic framework.

Monitoring and evaluation systems must evolve into effective management tools. A harmonised system that continuously assesses outcomes could play a decisive role in translating S3 strategies into tangible results for Europe’s regions.

Our approach

Since their introduction in EU Cohesion Policy for the 2014-2020 programming period, S3 strategies have evolved significantly. The former requirement for an innovation strategy as a precondition for receiving ERDF funding – the so‑called ex ante conditionality – was replaced in the 2021-2027 period by a thematic “enabling condition”. This condition is defined by seven clear criteria, with a stronger focus on governance structures, clear allocation of responsibilities, and effective monitoring and evaluation systems.

Prognos, in cooperation with CSIL, applied a comprehensive methodological framework, including:

• an EU‑wide stakeholder survey with more than 240 respondents
• AI‑supported analysis of over 420 documents, including 171 S3 strategies and 183 ERDF programmes
• 30 semi‑structured interviews
• 14 in‑depth case studies across European regions

Preliminary findings were presented in June 2025 at the European Commission’s S3 Conference.

Links and downloads

Full report (PDF)

Key findings (PDF)

Case Studies (PDF)

Project team: Dr Jonathan Eberle, Dr Eva Dantas, Felix Ginzinger, Francesco Fumagalli, Paulius Mater-Pranskevicius, Paul Möhlmann, Fabian Schmidt, Johanna Thierstein, Isabel Schöfl, Dr Justyna Kramarczyk, Dr Jan-Philipp Kramer, Vincent Vogelsang, Joseba Unzaga Rubio

Last update: 14.04.2026