Linear Optimization Modeling for Smart Specialization in Primary Sectors of a Developing Country

Abstract

Different regional innovation profiles have forced policymakers to engage in innovation policymaking at the subnational level. As a regional approach, smart specialization has recently received attention in various contexts, focusing on stimulating innovation according to each region's existing capabilities and prospects. Although this strategy benefits developing countries with vast cultural and geographical diversity, they have yet to adopt it. After reviewing regional innovation models to identify various variables affecting regional innovation, this article presents a linear optimization model for the division of work in industry, mining, and agriculture among the regions of a country and then implements it in Iran as a case study. Since the results of implementing the model match the findings of previous regional studies, the credibility of the mathematical optimization for smart specialization is verified.