Title: Economic development of peripheral/lagging zones through smart innovation

Authors: Stelian Brad; Bogdan Mocan; Emilia Brad; Mihaela Mocan

Addresses: Research Centre for Engineering and Management of Innovation, Technical University of Cluj-Napoca, Memorandumului 28, 400114 Cluj-Napoca, Romania ' Research Centre for Engineering and Management of Innovation, Technical University of Cluj-Napoca, Memorandumului 28, 400114 Cluj-Napoca, Romania ' Research Centre for Engineering and Management of Innovation, Technical University of Cluj-Napoca, Memorandumului 28, 400114 Cluj-Napoca, Romania ' University of Medicine and Pharmacy 'Iuliu Hațieganu', Louis Pasteur 4, 400349 Cluj-Napoca, Romania

Abstract: In a globalised world, macro-economic policies are insufficient to properly handle the complex game of economic development and stabilisation. Significant differentiations and specificities are visible at the regional level due to new ways of communication, mobility, education, and access to information. A change of focus is therefore necessary from a macro- to a meso-economic approach. The meso level of analysis reveals significant imbalances between knowledge hubs, industrial zones and rural areas. Of special concern are rural areas, which in most cases fall into the category of lagging zones where local social capital and other basic factors show little potential to break down vicious circles in economic development. Under these circumstances, this paper introduces the concept of smart innovation as a means of supporting accelerated economic development within lagging zones. Innovation can be defined as smart when it embraces nonlinear paths to economic growth in areas with poor active endowments. An approach for operationalising smart innovation is also presented in this paper. Its potentiality is demonstrated using the example of a rural lagging zone with 25,000 inhabitants, a low level of economic activity, and significant structural gaps.

Keywords: economic development; lagging zones; competitiveness; rural connectivity; integrated projects; differentiation; smart innovation; peripheral zones; mesoeconomics; knowledge hubs; industrial zones; rural areas; social capital.

DOI: 10.1504/IJTIS.2015.077193

International Journal of Transitions and Innovation Systems, 2015 Vol.4 No.3/4, pp.201 - 220

Received: 15 Sep 2015
Accepted: 06 Jan 2016
Published online: 22 Jun 2016 *

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