The Regional Industrial Policy and Territorial Development

Abstract

The paper examines the post-socialist industrial development, industrial policy (IP), regional specialization and spatial distribution in the part of South-Eastern Europe, i.e. in so-called Western Balkans (SEE-WB), and, especially in Serbia. The research includes an overview of the theoretical basis of industrial policy, as well as the European RIS framework, which is also prescribed for the countries joining the EU (in order to make the Smart Specialization Strategy). A comparative ex-post analysis of industrial development and spatial distribution in the SEE-WB is based on quantitative exploration. The results of a comparative analysis of industrial concentration and regional specialization in the analyzed period highlight the weak regional diversification of industrial activity. Despite the predictions that political and economic integration will lead to an increase in regional industrial specialization, the quantitative results show the opposite trend in the SEE-WB, as well as an absence of regional integration in terms of specialization and spatialization. Also, the paper explores the industrial development and strategic perspectives of the new Serbian IP and territorial development. The new IP can cause different impacts on the territorial development, planning and governance. Some recommendations for improving the IP and reducing spatial inequalities in the SEE-WB are given.