Tax base change due to increased specialisation in value added business etc. Economic Structure The economic structure of a region is of course a key parameter when assessing the potential of a region for smart specialisation activities. Different levels of analysis may be applied depending on the regional economic structure and the focus of the smart specialisation activity. Public Budgetary Funds Public budgetary funds define the boundaries within which funding can be deployed for smart specialisation strategies. Current and projected budgetary funds should hence be recorded as input data. Innovation Support System The innovation support system in a region includes any type of organised support that is available for use in smart specialisation activities, including incubation support as well as relevant infrastructure. Education & Training System The regional education and training system provides the relevant innovation ecosystem for specialisation, including research and training of students in relevant academic degree courses. Research System The research system of a region encompasses academic institutions, commercial research companies, research-relevant infrastructure and supporting organisations. Funding for Business R&D&I Funding for Business R&D&I is a key direct means through which regions can influence business specialisation that relies on research, development and/or innovation. Funding for Business Innovation Support Funding for Business Innovation Support enables businesses to pursue their own innovation activities more effectively and efficiently using centralised regional support infrastructures, i.e. services that include advising for innovation activities. Investment in VET & New Postgraduate Courses Investment in VET and new postgraduate courses is intended to position a region as a source of qualified staff in the chosen areas of specialisation of the region. Science Investment R&D by Field The overall science investment in R&D by field is an important measure in order to steer investments made into areas of specialisation in a manner that supports the specialisation plan of a region. Change Pattern of Business Expenditure on R&D by Sector Measuring the change pattern of business expenditure on R&D by sector enables a region to determine the impact of investments made into specific sector specialisations. New Inward FDI by Sector/Type (H-M tech, KIS) Observing new inward FDI by sector and type is of course important in order to understand inflows of investment into a region considering the economic sectors that are part of a smart specialisation strategy. Masters & PhD Graduates in STEM or KETs Fields It is important to measure masters and PhD graduates in STEM or KETs fields relevant to the smart specialisation approach of a region mainly in order to determine whether education-related specialisation activities lead to the desired results in terms of graduation numbers. Change in share of Sector of Exports by Value Changes in share of sector of exports by value can be used in order to determine whether a specialisation strategy is leading to changes in the composition of exports towards the target areas of smart specialisation. Change in Share of Sectors (H-M Tech, KIS) in Value Added Changes in share of sectors in value added help measure to which extent smart specialisation helps businesses in a region to generate value in the areas targeted by smart specialisation efforts. Innovation Outputs (New Products, Processes, etc.) It is important to determine innovation outputs in terms of e.g. new products, processes, systems or services in order to identify advances made in smart specialisation topic areas as well as in candidate areas for future smart specialisation activities. Patents & Other IP (esp. in KETs) Patents, patent applications and other IP should be measured as tangible outputs relevant for registering activities related to smart specialisation strategies. Scientific Output by Field (esp. in KETs) The scientific output by field usually focuses on scientific publications and participation in scientific conferences. This is an important indicator for measuring the effect of regional investments in science. Established indicators exist e.g. for considering the reputation of scientific journals as part of evaluating scientific output. Emerging High- Value/Knowledge Intensive Business Clusters The ultimate aim of the exercise is to create high-value knowledge intensive business clusters in the areas of specialisation targeted by a respective specialisation strategy.