Share:


Evaluation of the implementation of smart specialisation strategy in Lithuanian industry

    Arūnas Augustinaitis Affiliation
    ; Jari Kaivo-oja Affiliation
    ; Theresa Lauraeus Affiliation
    ; Austė Kiškienė Affiliation
    ; Levan Bzhalava Affiliation
    ; Steffen Roth Affiliation

Abstract

This article provides data-driven analyses of Lithuanian foreign trade activities. We combine Herfindahl-Hirschman Index (HHI) and Lauraéus-Kaivo-oja Index (LKI) measures to identify key changes and trends in export and import structures of the Lithuanian economy. The findings suggest that the export and import portfolios of the Lithuanian economy have been successfully diversified and the Lithuanian Smart Specialisation Strategy (S3) successful implemented in years 2015 through 2020. Presented in the form of HHI and LKI time series, our findings and the corresponding conclusions will be relevant to both the Lithuanian export and import industry and to industrial and economic policymakers in Lithuania and in international export and import agencies.

Keyword : industrial structure, smart specialisation, Herfindahl-Hirschman Index, Lauraéus-Kaivo-oja Index, export portfolios, import portfolios

How to Cite
Augustinaitis, A., Kaivo-oja, J., Lauraeus, T., Kiškienė, A., Bzhalava, L., & Roth, S. (2022). Evaluation of the implementation of smart specialisation strategy in Lithuanian industry. Journal of Business Economics and Management, 23(6), 1299–1314. https://doi.org/10.3846/jbem.2022.18295
Published in Issue
Dec 20, 2022
Abstract Views
446
PDF Downloads
360
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Adams, C. (2017). What is the Herfindahl Hirschman Index (HHI) and why would you use it? Modern Analyst. http://www.modernanalyst.com/Careers/InterviewQuestions/tabid/128/ID/1003/What-is-the-Herfindahl-Hirschman-Index-HHI-and-why-would-you-use-it.aspx

Anderson, K. (1995). Australia’s changing trade pattern and growth performance. Australia’s Trade Policies.

Asheim, B. (2019). Smart specialisation, innovation policy and regional innovation systems: What about new path development in less innovative regions? Innovation: The European Journal of Social Science Research, 32(1), 8–25. https://doi.org/10.1080/13511610.2018.1491001

Balassa, B. (1965). Trade liberalisation and “Revealed” comparative advantage. The Manchester School, 33(2), 99–123. https://doi.org/10.1111/j.1467-9957.1965.tb00050.x

Barca, F. (2009). An Agenda for a reformed cohesion policy: A place-based approach to meeting European Union challenges and expectations. Independent report prepared at the request of Danuta Hübner, European Commissioner for Regional Policy. Economics and Econometrics Research Institute (EERI), Brussels.

Benner, M. (2017). From clusters to smart specialization: Tourism in institution-sensitive regional development policies. Economies, 5(3), 26. https://doi.org/10.3390/economies5030026

Bikker, J. A., & Groenveld, J. M. (2000). Competition and concentration in the EU banking industry. Kredit and Kapital, 33(1), 62–98. https://doi.org/10.3790/ccm.33.1.62

Blumer, H. (2017). Methodological principles of empirical science. Sociological Methods, 4(5), 20–39. https://doi.org/10.4324/9781315129945

Boschma, R. (2017). Relatedness as driver of regional diversification: A research agenda. Regional Studies, 51(3), 351–364. https://doi.org/10.1080/00343404.2016.1254767

Brennan, L., & Rakhmatullin, R. (2015). Global value chains and smart specialisation strategy. Publications Office of the European Union, Luxembourg.

Broekel, T., & Mueller, W. (2018). Critical links in knowledge networks – What about proximities and gatekeeper organisations? Industry and Innovation, 25(10), 919–939. https://doi.org/10.1080/13662716.2017.1343130

Brunner, H.-P., & Calì, M. (2006). Dynamics of manufacturing competitiveness in Asia: Analysis through export data (ERD Working Paper Series, 77).

Capasso, M., Stam, E., & Cefis, S. (2015). Industrial dynamics and economic geography. Regional Studies, 49(1), 5–9. https://doi.org/10.1080/00343404.2014.982440

Caragliu, A., & Del Bo, C. F. (2015). Smart specialization strategies and smart cities: An evidence-based assessment of European Union policies. In The rise of the city (pp. 55–84). Edward Elgar Publishing. https://doi.org/10.4337/9781783475360.00009

Carlton, D. W., & Perloff, J. M. (1994). Modern industrial organisation. Harpercollins College Div.

Chen, H., & Li, G. (2011). Empirical study on effect of industrial structure change on regional economic growth of Beijing-Tianjin-Hebei Metropolitan Region. Chinese Geographical Science, 21(6), 708–714. https://doi.org/10.1007/s11769-011-0478-9

Čiučkovič, N., Jurlin, K., & Vučkovič, V. (2013). Measuring regional competitiveness: The case of Croatia. Southeast European and Blach Sea Studies, 13(4), 503–523. https://doi.org/10.1080/14683857.2013.859813

Dorozynski, T., & Kuna-Marszalek, A. (2016). Investment attractiveness. The case of the Visegrad Group Contries. Comparative Economic Research, 19(1), 117–138. https://doi.org/10.1515/cer-2016-0007

Drysdale, P. (1988). International economic pluralism: Economic policy in East Asia and the Pacific. Allen & Unwin.

European Commission. (2012). Guide to research and inovation strategies for smart specialisation (RIS 3). Briussels.

Foray, D. (2014). From smart specialisation to smart specialisation policy. European Journal of Innovation Management, 17(4), 492–507. https://doi.org/10.1108/EJIM-09-2014-0096

Foray, D. (2018). Smart specialisation strategies and industrial modernisation in European regions – theory and practice. Cambridge Journal of Economics, 42(6), 1505–1520. https://doi.org/10.1093/cje/bey022

Foray, D., & Goenaga, X. (2013). The goals of smart specialisation (S3 Policy Brief Series, No. 01/2013).

Foray, D., Goddard, J., Goenaga Beldarrain, X., Landabaso, M., McCann, P., Morgan, K., Nauwelaers, C., & Ortgea-Argiles, R. (2012). Guide to research and innovation strategies for smart specialisation (RIS 3). Smart Specialisation Platform. IPTS, Seville.

Frenken, K., Van Oort, F., & Verburg, T. (2007). Related variety, unrelated variety and regional economic growth. Regional Studies, 41(5), 685–697. https://doi.org/10.1080/00343400601120296

Garnant, R. (1989). Australia and the Northeart Asian ascendancy. Australian Govt. Pub. Service.

Ghinoi, S., Steiner, B., Makkonen, T., & Hassink, R. (2021). Smart Specialisation strategies on the periphery: A data-triangulation approach to governance issues and practices. Regional Studies, 55(3), 402–413. https://doi.org/10.1080/00343404.2020.1791321

Gianelle, C., Guzzo, F., & Mieszkowski, K. (2020). Smart Specialisation: What gets lost in translation from concept to practice? Regional Studies, 54(10), 1377–1388. https://doi.org/10.1080/00343404.2019.1607970

Gilligan, T. (2006). Industrial concentration. The Concise Encyklopedia of Economics.

Ginevičius, R. (1998). Įmonės veiklos diversifikacija. Technika.

Ginevičius, R., & Andriuškevičius, A. (2000). Gamybos koncentracija rinkos ekonomikoje [Concentration of production in market economy]. Economics: Science Works, 51, 20–29. https://doi.org/10.15388/Ekon.2000.16890

Ginevičius, R., Stasiukynas, A., Gedvilaitė, D., & Slavinskaitė, N. (2015). Issues of quantitative assessment of the industry structure of a country’s region. KSI Transactions on Knowledge Society: a Publication of the Knowledge Society Institute, 8(2), 5–10.

Godlewska-Majkowska, H., & Komor, A. (2021). Energy as a factor of investment attractiveness of regions for agricultural enterprises. Energies, 14(9), 2731. https://doi.org/10.3390/en14092731

Hallack, J. (2004). Product quality, linder and the direction of trade. https://doi.org/10.3386/w10877

Hannan, T. (1997). Market share inequality, the number of competitors, and the HHI: An examination of Bank pricing. Review of Industrial Organization, 12(1), 23–35. https://doi.org/10.1023/A:1007744119377

Herfindahl, O. (1950). Concentration in the US Stell Industry [Dissertion]. Columbia Univerity.

Hirschman, A. (1945). National power and the structure of foregn trade. University of California Press.

Ionescu, A. M., Clipa, A. M., Turnea, E. S., Clipa, C. I., Bedrule-Grigoruță, M. V., & Roth, S. (2022). The impact of innovation framework conditions on corporate digital technology integration: Institutions as facilitators for sustainable digital transformation. Journal of Business Economics and Management, 23(5), 1037–1059. https://doi.org/10.3846/jbem.2022.17039

Jenissen, B., Thomson, R., Clark, C., & Geer, T. (1998). Aspects of structural change in Australia. Research paper. Productivity Commission.

Kaivo-oja, J., Ahlqvist, T., Kuusi, O., Linturi, R., & Roth, S. (2018). New industrial platforms and radical technology foresight: The case of 3D printing in Finland and Europe. International Journal of Manufacturing Technology and Management, 32(1), 65–84. https://doi.org/10.1504/IJMTM.2018.089464

Kaivo-oja, J., Roth, S., & Westerlund, L. (2017). Futures of robotics. Human work in digital transformation. International Journal of Technology Management, 73(4), 176–205. https://doi.org/10.1504/IJTM.2017.083074

Kotnik, P., & Petrin, T. (2017). Implementing a smart specialisation strategy: An evidence-based approach. International Review of Administrative Sciences, 83(1), 85–105. https://doi.org/10.1177/0020852315574994

Kozlova, M., & Collan, M. (2020). Renewable energy investment attractiveness: Enabling multi-criteria cross-regional analysis from the investors’ perspective. Renewable Energy, 150, 382–400. https://doi.org/10.1016/j.renene.2019.12.134

Lauraéus, T., & Kaivo-oja, J. (2017). New transparent way to perform competition, market structure and IPR portfolio analyses: Analysis of the dynamics of trademark competition in Finland as a case example. Journal of Business Management and Economics, 5(12), 8–23.

Lijesen, M. G., Nijkamp, P., & Rietveld, P. (2002). Measuring competition in civil aviation. Journal of air Transport Management, 8(3), 189–197. https://doi.org/10.1016/S0969-6997(01)00048-5

Liston-Heyes, C., & Pilkington, A. (2004). Inventive concentration in the production of green technology: A comparative analysis of fuel cell patents. Science and Public Policy, 31(1), 15–25. https://doi.org/10.3152/147154304781780190

Lopes, J., Ferreira, J. J., & Farinha, L. (2019). Innovation strategies for smart specialisation (RIS3): Past, present and future research. Growth and Change, 50(1), 38–68. https://doi.org/10.1111/grow.12268

McCann, P., & Ortega-Argilés, R. (2016). Smart specialisation, entrepreneurship and SMEs: Issues and challenges for a results-oriented EU regional policy. Small Business Economics, 46(4), 537–552. https://doi.org/10.1007/s11187-016-9707-z

Misra, A. (2006). Growth and structural change in manufacturing industries since 1980–1981 to 2001–2002. Journal of Industrial Economics. https://ssrn.com/abstract=945577

Naldi, L., Nilsson, P., Westlund, H., & Wixe, S. (2015). What is smart rural development? Journal of Rural Studies, 40, 90–101. https://doi.org/10.1016/j.jrurstud.2015.06.006

Naldi, M. (2003). Concentration indices and Zipf’s law. Economics Letters, 78(3), 329–334. https://doi.org/10.1016/S0165-1765(02)00251-3

Perez, C. (2006). Re-specialisation and the deployment of the ICT paradigm: An essay on the present challenges of globalization. In I. Maghiros, The future of the information society in Europe: Contributions to the debate (pp. 27–56). European Commission, Directorate General Joint Research Centre.

Radosevic, S., & Ciampi Stancova, K. (2018). Internationalising smart specialisation: Assessment and issues in the case of EU New Member States. Journal of the Knowledge Economy, 9(1), 263–293. https://doi.org/10.1007/s13132-015-0339-3

Rinkevičiūtė, V., & Martinkutė-Kaulienė, R. (2014). Impact of market concentration on the profitability of Lithuanian banking sector. Business: Theory and Practice, 15(3), 254–260. https://doi.org/10.3846/btp.2014.25

Rodionov, D. G., Konnikov, E. A., & Nasrutdinov, M. N. (2021). A transformation of the approach to evaluating a region’s investment attractiveness as a consequence of the COVID-19 pandemic. Economies, 9(12), 59. https://doi.org/10.3390/economies9020059

Rodríguez-Pose, A., & Di Cataldo, M. (2015). Quality of government and innovative performance in the regions of Europe. Journal of Economic Geography, 15(4), 673–706. https://doi.org/10.1093/jeg/lbu023

Romão, J. (2020). Variety, smart specialization and tourism competitiveness. Sustainability, 12(14), 5765. https://doi.org/10.3390/su12145765

Roth, S. (2021). From nonprofit diversity to multifunctional stakeholder management. A systems-theoretical proposal. In Problemi rozvitku tretogo sektora ta sotsіalno-orієntovanoї ekonomіki v Ukraїnі і svіtі: zbіrnik materіalіv Mіzhnarodnoї naukovo-praktichnoї onlayn-konferentsії 30 bereznya 2021 roku. Poltava, PDAA.

Roth, S., Dahms, H. F., Welz, F., & Cattacin, S. (2019). Print theories of computer societies. Introduction to the digital transformation of social theory. Technological Forecasting and Social Change, 149, 119778. https://doi.org/10.1016/j.techfore.2019.119778

Roth, S., Kaivo-Oja, J., & Hirschmann, T. (2013). Smart regions: Two cases of crowdsourcing for regional development. International Journal of Entrepreneurship and Small Business, 20(3), 272–285. https://doi.org/10.1504/IJESB.2013.056890

Roth, S., Valentinov, V., Kaivo-oja, J., & Dana, L. P. (2018). Multifunctional organisation models: A systems – theoretical framework for new venture discovery and creation. Journal of Organizational Change Management, 31(7), 1383–1400. https://doi.org/10.1108/JOCM-05-2018-0113

Sabonienė, A. (2009). Lithuanian export competitiveness: Comparison with other Baltic States. Inžinerinė Ekonomika-Engineering Economics, 2, 49–57.

Sabonienė, A. (2010). The evaluation of the potential of Lithuanian manufacturing industry structure on the basis of CI Index. Inžinierinė Ekonomika-Engineering Economics, 21(4), 399–407.

Schott, P. (2004). Across-product versus within-product. Specialization in international Trade. Quarterly Journal of Economics, 3(1), 261–269.

Sheehan, P. (2000). Manufacturing and growth in the longer term: An economic perspective (CSES Working Paper, No 17).

Sheehan, P. J., & Tikhomirova, G. (1996). Diverse paths to industrial development in East Asia and ASEAN (CSES Working Paper, No 6).

Snieška, V., & Bruneckienė, J. (2009). Measuring of Lithuanian regions by regional competitiveness index. Inžinerinė Ekonomika-Engineering Economics, 61(1), 45–57.

Szirmai, A., Ren, R., & Bai, M. (2005). Chinese manufacturing performance in comparative perspective, 1980–2002 (Center Disscusision Paper, No 920). Economic Growth Center.

The American Marketing Association. (2005). Dictionary of Marketing Terms.

The New York Times Company. (2010). Glossary of Economics Terms. Economics Dictionary.

Tiits, M., Kalvet, T., & Mürk, I. (2015). Smart specialisation in cohesion economics. Journal of the Knowledge Economy, 6(2), 296–319. https://doi.org/10.1007/s13132-015-0239-6

Tikhomirova, G. (1997). Analysing charges in industry structure (CSES Working Paper, 11).

United Nations. (n.d.). United Nations Framework Convention on Climate Change (UNFCCC). FCCC/INFORMAL/84 GE.05-62220 (E) 200705. https://unfccc.int/resource/docs/convkp/conveng.pdf

Valentinov, V., Roth, S., & Will, M. G. (2019). Stakeholder theory: A Luhmannian perspective. Administration & Society, 51(5), 826–849. https://doi.org/10.1177/0095399718789076

Vasiliauskas, A. (2006). Strateginis valdymas [Strategic management]. Technologija.

Wheelen, T. L., & Hunger, J. D. (1988a). Corporate strategies of a company operating primarily in one industry. Person Prencile Hall.

Wheelen, T. L., & Hunger, J. D. (1988b). Major corporate growth strategies. Person Prentice Hall.

Whittle, A., Lengyel, B., & Kogler, D. F. (2020). Understanding regional branching knowledge diversification via inventor collaboration networks. Papers in Evolutionary Economic Geography (PEEG).

Wolf, J. (1995). Die Messung des Diversifikationsgrads von Unternehmen (I). Wirtschaftsstudium, 5, 439–445.