Abstract: The ‘smart specialization’ is a concept introduced for enhancing innovation in EU. Smartness lies in entrepreneurial discovery of areas of specialisations that best fit innovation potential of the territory. Smartness is defined at meso level of evaluation as horizontal overlaps between three domains of knowledge triangle, education, research, innovation. Overlap is measured as correlation of impacts of evaluated innovation instruments between three domains. Case study suggests that vertical and horizontal, or ‘dumb’ and ‘smart’ innovation policies are in principle equally decisive for enhancing innovation. This suggests new concept of specialization in innovation, that is not merely smart but fully mesoscopic.