Successful Economic Diversifications: Implications for Refining Smart Specialisation Strategies in Less Developed Regions

Related and unrelated diversification take ample space in scientific and political debates. Against the backdrop of refining smart specialisations strategies, this paper identifies diversification patterns towards the highest income growth in less developed areas in 1931–2000. It is argued that both related and unrelated (in longer-term) diversifications are fundamental for evolutionary growth of less developed regions, however, only the former process has been confirmed in the analyses. Both related variety of industries and expertise in 1931 also point to successful diversification. The implications for theories of Evolutionary Economic Geography and regional policy actions in less developed regions are discussed.