Smart specialisation is now a major idea behind the European Commission’s cohesion policy reforms in the field of innovation, and it must be applied by European Union member countries in order to secure funding under the 2014–2020 European Union budget, even though the concept itself has only recently emerged. The success of translating this policy into practice depends on a thorough analysis of regions’ and countries’ potential for innovation based on empirical evidence. Currently, countries use a wide array of methods to define priority areas, but these have, for the most part, failed to address the challenges of this process. This article explores the data that can be used in the prioritisation process of developing a smart specialisation strategy. The approach follows the main recommendations for profiling regions and countries, uses data already available at the national statistical offices, and is based on indicators that can be grasped intuitively by policymakers. It includes data on each relevant aspect of smart specialisation, that is, economic, scientific and technological specialisation, as well as the entrepreneurial discovery process. This article demonstrates the approach using a case with Slovenian data; the results suggest that it can be an effective tool for narrowing down a list of industries to be considered for a smart specialisation strategy.

Points for practitioners

A smart specialisation strategy will be a precondition for using European Union regional and investment funds during 2014–2020 in order to support research and innovation investments. The success of translating this policy into practice depends on a thorough analysis of regions’ and countries’ potential for innovation based on empirical evidence. A ready-to-use methodology for narrowing down a list of industries to be considered for a smart specialisation strategy is proposed, and is demonstrated using the example of Slovenia.