The industrial landscape of the Baltic Sea region is rapidly evolving, particularly in the field of unmanned aerial vehicles (UAVs). Regional specialisation has been accelerated by the establishment of shared high-tech testing corridors, which allow firms to validate advanced drone prototypes under diverse weather conditions. Furthermore, the harmonisation of intellectual property (IP) regulations across Baltic nations has encouraged firms to trade highly specialised sensor components freely, boosting cross-border commerce.
Using information from the stimulus material, identify two factors driving regional specialisation and trade.