Identification of Smart Regions with Resilience, Specialisation and Labour Intensity of globally Competitive Sector – The Examination of the LAU-1 Regions in Finland


  • Teemu Haukioja
  • Jari Kaivo-oja
  • Ari Karppinen
  • Saku Vähäsantanen



The purpose of the study is to construct smart specialization indicators for LAU-1 regions in Finland. Established indices are based on indicators on region’s revealed comparative advantage, and the degree of diversification in its sub-regional industrial structure. Further, we introduce a measure that can be used to assess the socio-economic importance (employment) of diversification and specialization for a region. The data of indices is based on the Statistic Finland (2015) with Local Administrative Unit level 1 (LAU1), 70 regions in Finland. The potential S3 Indices measured here reveal sub-region’s Smart specialization position within 70 sub-region in Finland in 2015. The common economic knowledge states that manufacturing industries are the most export-oriented, highly productive, and thus, can approximate the region’s success in international trade and competitive advantages. The study is based on smart specialization indices: the Herfindahl-Hirschman Index for regional resilience (HHI), regional relative specialization index (RRSI) based on Balassa-Hoover Index (B-H), and the relative employment volume index in manufacturing sector (LIMI). By index examination, we can obtain knowledge about a region’s smart specialization status and potentials. Results reveal that, firstly, each sub-region has its own smart specialization characters with different risk profile. Secondly, specialization strategy (RRSI) in smart specialization has yielded more secure strategy than sub-regional resilience strategy in Finland.  Sub-regions like Helsinki and Tampere have similar industrial structure like Finland as whole and they are resilient: they will benefit from nation-wide economic and industrial policy, and they have good ability to resist economic shocks. Our study reveals that there are some other similar smaller (LAU-1) sub-regions in Finland – like Rauma. As such, this kind of research based basic information is critical to been taken into account while constructing sustainable strategies for regional development. Similar calculations can be performed for all regions in Europe.


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Social Evolution of Europe