Moving to Smart Specialization for sustainability: the implications on the design of monitoring indicators

Abstract Smart Specialization policy, Europe’s place-based innovation policy, is transitioning into an innovation policy for sustainability inspired by academic debate and the urgency of societal challenges. The implications in terms of policy design remain underexplored. This paper studies the policy implications of this transition on the design of monitoring indicators. First, a theoretical framework based on the literature is created. Then, monitoring indicators used in the first policy phase are summarized into categories and themes through inductive and deductive document analysis. The indicators’ strengths and limitations are discussed. By highlighting how monitoring indicators need to adjust to the policy transition, this paper contributes to the literature on innovation policy and Smart Specialization. It also provides guidance to policymakers by developing a framework on indicator design and providing practical recommendations on aspects that need to be considered, captured, and analysed through the indicators.