PROBLEMS OF REGIONAL DEVELOPMENT AND DECENTRALIZATION УДК 332.146:330.341.1 1Institute for Economics and Forecasting of NAS of Ukraine SMART SPECIALIZATION POTENTIAL REVEALING FOR THE OVERCOMING OF REGIONAL STRUCTURAL INERTNESS IN UKRAINE Prerequisites for the formation and development of the smart specialization concept in the EU are researched. The author identified the main characteristics of the smart specialization and its focus on mitigating the regional problems that impeded the realization of regional potential and discouraged the technological changes in the basic sectors of regional economy. It is found that entrepreneurial insight is the main principle of smart specialization, differentiating this innovative approach to priorities of the regional development setting from the previous ones. Keywords:smart specialization; regional development; diversification; European Union; Ukraine Бібл. 16
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