Launched in 2008 by the K4G (Knowledge for Growth) Expert Group at the request of Janez Potočnik, the concept of smart specialization evolved extremely rapidly, from an academic discussion to an agreed, endorced and enforced regional development policy by the European Commission through the thematic ex-ante conditionality 1.1 Research and Innovation. The extremely short period associated with the process of developing, understanding, and implementing this concept has generated many challenges for both policy makers as well as the private sector. In an attempt to clarify the concept of smart specialization, the present article addresses in its first part a structured presentation of the concept, principles, objectives and stages of implementation. In the second part I critically analyze the main weaknesses, the dilemmas and deficiencies of the policy and the impact of these challenges in our country. A series of conclusions and recommendations are presented at the end.