The aim of this paper is to provide a quick yet comprehensive understanding of the nature and logic of smart specialisation as a place-based strategy for economic transformation and development. The origin and characteristics of the smart specialisation approach in the European Union are presented together with the main challenges for a successful implementation. Smart specialisation is about identifying and pursuing sub-sectoral and inter-sectoral activities, which can be explored by existing but also new entrant firms, where technology can facilitate either radical innovation, or the incremental utilisation of existing skills/strengths in new niches, fostering regional and national technology-savvy economic transformation. Stakeholder involvement through an entrepreneurial discovery process is a defining feature of this approach.JRC.J.2-Knowledge for Growt