Place-based innovation policy for industrial diversification in regions

New industrial innovation policies like smart specialization aim at boosting economic growth by diversification towards more complex and higher value economic activities. This paper proposes a conceptual and analytical framework to support the design and implementation of such policies considering place-specific preconditions, particularly the differentiation of the regional system of innovation and entrepreneurship and the degree of current industrial diversification. The paper expands on the links between these preconditions and the barriers and opportunities for industrial diversification. Consequently, it proposes an archetypical place-based policy framework covering overall policy objectives as well as measures at the level of actors, networks, and the institutional and organizational support structures.