Smart Specialisation Strategy and its Effects on Regional Innovation: Insights from Northern Portugal

Abstract Research and Innovation Strategies for Smart Specialisation ( RIS3 ) have become a central instrument of EU cohesion policy. Nevertheless, empirical evidence on their implementation in peripheral regional contexts, particularly regarding the role of non-business entities in the Research and Innovation (R&I) system and governance mechanisms, remains limited. This article examines the RIS3 of Northern Portugal during the 2014–2020 programming period, focusing on two dimensions: the degree of relative specialisation of NUTS III sub-regions across priority domains and the perceived contribution of non-business R&I entities to regional innovation within the Regional Innovation System ( RIS ). A mixed-methods approach is employed, integrating documentary analysis, database research, and a questionnaire survey administered to non-business R&I entities. The study utilises Location Quotient analysis and Partial Least Squares Structural Equation Modelling ( PLS-SEM ). The findings indicate that the Porto Metropolitan Area demonstrates the broadest specialisation profile (six domains), whereas peripheral sub-regions concentrate on fewer priority areas. Statistical modelling identifies perceived associations between non-business R&I entities and organisational innovation, product innovation, competitive orientation, and internationalisation of the business sector, as well as between RIS3 governance and organisational innovation. These results contribute to the literature on smart specialisation and regional innovation systems by highlighting the intermediary role of non-business R&I actors and the importance of governance coordination in peripheral European regions, offering practical implications for future programming periods.