Breaking with the past in smart specialisation: A new model of selection of business stakeholders within the entrepreneurial process of discovery.

The real core of the smart specialisation approach is embedded in what is known as the entrepreneurial process of discovery (EPD), which is a main novelty of this innovative policy framework. A successful EPD requires a relevant involvement of stakeholders, but this demands a careful actors´ selection. This paper proposes an analytical method for the selection of private business stake-holders, based on a transparent and measurable criterion: the choice of the entrepreneurs who can best de.ne an adequate resource allocation over time in a context of uncertainty. On the basis of a dynamic general equilibrium model with monopolistic competition, the paper proposes a simple test comparing the optimal decisions on factors.demand taken in di¤erent periods. The closer the factors. demands are, the better the entrepreneur.s ability will be to predict the most adequate level of resources. The main contributions are three-fold. Firstly, it proposes an analytically-sound method to discriminate between entrepreneurs, which could minimise rent-seekers.behaviours. Secondly, the model incorporates new features in relation to previous references, such as monopolistic competition and consumer behaviour. Thirdly, the entrepreneurship discussion is broadened to consider not only labour but also private capital.