Smart specialization policy in an economically well-developed, multilevel governance system

This chapter analyzes the situation of German regions making sense of the seeming paradox that despite their advanced economies, well-established governance systems, and high administrative capacities few of them have engaged strongly with the European Union's smart specialization agenda. It finds that, first and foremost, smart specialization is a political process that has to be interpreted in categories of not only policy making but also political expedience. Where the economy runs well, governance systems are complex and path-dependent, and the political culture does not favor recommendations from external parties, new strategic agendas seem to entail more effort than they bring in benefits.