Beyond STI: A Multi-Layered Evolutionary Framework for Innovation Dynamics in Lagging Regions

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Abstract

Persistent regional disparities in innovation performance remain a longstanding challenge for the European Union, particularly in structurally weaker territories classified as Emerging and Moderate Innovators. Conventional Science–Technology–Innovation (STI) models, with their emphasis on formal R&D, patents, and codified knowledge, often yield limited traction in these contexts. This paper develops a Multi-Layered Evolutionary Innovation Framework that captures how micro-level firm behaviors, meso-level regional innovation system structures, and macro-institutional capacities jointly shape innovation outcomes. Leveraging a panel of 245 NUTS-2 regions from 2016 to 2023, the analysis employs fixed-effects regression models with interaction terms to assess the role of Doing–Using–Interacting (DUI) mechanisms—centered on tacit knowledge, experiential learning, and informal collaboration. Results indicate that DUI serves as a consistently robust and temporally resilient driver of innovation, particularly in regions where formal STI infrastructures are underdeveloped. Furthermore, hybrid strategies that combine DUI and STI yield the highest returns, though this complementarity materializes only under conditions of strong institutional embeddedness. The effectiveness of innovation modes displays considerable heterogeneity across regional contexts, shaped by non-linear, path-dependent interactions with macro-level absorptive capacities, proxied by human capital endowments. These findings challenge the prevailing STI-centric policy paradigm and point to the necessity of adopting evolutionary, context-sensitive, and multi-scalar innovation strategies. In doing so, the study provides actionable empirical insights and conceptual contributions for designing policies that elevate informal, practice-based innovation alongside formal scientific processes, particularly in structurally disadvantaged regions. JEL Codes: O18; O31; O33; R11; C23

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