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Absorptive capacity is considered a main precondition for regional innovativeness. However, each region is unique, and analyzing its innovativeness requires an appropriate methodology. Within scientific discussion on the concept of the “region”, most of the scientific research analyzing absorptive capacity tends to be conducted for large or highly developed regions. Small countries (such as Lithuania) are considered indivisible regional units; therefore, there is still a lack of research to provide specific tools that could be adapted to assess regional absorptive capacity in a small country. Taking this into consideration, this chapter’s objective is to present a methodology for assessing RIS absorptive capacity that has been adapted to the context of regions in a small country (Lithuania). Its goals are as follows: (1) to explain the concept of absorptive capacity in the context of a RIS; (2) to provide the theoretical background for assessing absorptive capacity; (3) to present a methodology for assessing absorptive capacity in a small country (Lithuania); and (4) to explain the main results of the research, which was conducted for RIS in Lithuania using the methodology presented here. The scientific research methods used were an analysis of scientific literature, statistical analysis, and the SAW multiple criteria method. The research revealed that regions in a small country differ in their various indicators of absorptive capacity. Using the appropriate tool for assessment can also be a tool for identifying a region’s strong and weak points as well as for promoting or interfering with the absorption of external knowledge.

Vitality of a smart region depends on the network of closely interconnected actors (individuals and institutions) seeking common goals of development and their capacities to ensure effective knowledge creation and exploitation. This network (a regional innovation system (RIS)) empowers processes of absorptive capacity—knowledge access, anchoring and diffusion, contributing to regional innovativeness and competitiveness. Absorptive capacity is considered an important object of scientific research. However, there is still a lack of research providing specific tools that are adaptable for assessing the regional absorptive capacity in a small country. Existing differences among countries and even regions inside a small country require adjusted and modified methods and instruments. Consequently, the goal of this research is to present and substantiate the methodological approach of assessing the RIS's absorptive capacity giving evidence from a smart region (Kaunas County) of a small country (Lithuania). The mixed-method approach of the research (combining qualitative and quantitative research strategies) was used to substantiate the presented methodological approach. A smart region of a small country can be characterized by a denser institutional infrastructure and higher results (outcomes) of innovative activities. Smartness of the region can be understood as a consequence of the higher level of absorptive capacity.