European Integration Studies 2018/12 50 Submitted 04/2018 Accepted for publication 11/2018 European Integration Studies No. 12 / 2018 pp. 50-62 DOI 10.5755/j01.eis.0.12.21872 Identifcation of Smart Regions with Resilience, Specialisation and Labour Intensity in a Globally Competitive Sector – Examination of LAU-1 Regions in Finland EIS 12/2018 Abstract Identification of Smart Regions with Resilience, Specialisation and Labour Intensity in a Globally Competitive Sector – Examination of LAU-1 Regions in Finland http://dx.doi.org/10.5755/j01.eis.0.12.21872 Teemu Haukioja Turku School of Economics, University of Turku Jari Kaivo-oja Futures Research Centre, Turku School of Economics, University of Turku Ari Karppinen Turku School of Economics, University of Turku Saku Vähäsantanen Regional Council of Satakunta The purpose of the study was to construct smart specialisation indicators for LAU-1 regions in Fin- land. Established indices are based on indicators of the regions’ revealed comparative advantage and the degree of diversification in the sub-regional industrial structure. Furthermore, we introduce an indicator that can be used to assess the socio-economic importance (employment) of diversification and specialisation for a region. The indices data is based on Statistics Finland (2015) data for the 70 Local Administrative Unit level 1 (LAU1) sub-regions in Finland. The potential S3 indices measured here reveal the position of each sub-region’s smart specialisation among the 70 sub-regions in 2015. It is common economic knowledge that manufacturing industries are the most export-oriented, highly productive and thus can approximate a region’s success in international trade and competitive advan- tages. The study is based on three smart specialisation indices: the Herfindahl-Hirschman Index for regional resilience (HHI), the regional relative specialisation index (RRSI) based on the Balassa-Hoover Index (B-H), and the relative employment volume index in the manufacturing sector (LIMI). Through in- dex examination, we can obtain knowledge about a region’s smart specialisation status and potential. The results reveal that each sub-region has its own smart specialisation characteristics with a different risk profile. Sub-regions like Helsinki and Tampere have a similar industrial structure to Finland as a whole and are resilient: they will benefit from nationwide economic and industrial policy, and they have a good capability of resisting economic shocks. Our study reveals that there are some other similar smaller (LAU-1) sub-regions in Finland – for example Rauma. As such, it is critical that this kind of research-based basic information be taken into account when constructing sustainable strategies for regional development. Similar calculations could be performed for all regions in Europe.