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Digital transformation of regional industries: The link between new path development, innovation system dynamics and asset modification

Arne Isaksen, Michaela Trippl, Nina Kyllingstad and Jan Ole Rypestøl

PEGIS from Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business

Abstract: The paper develops a conceptual framework for analysing wide-ranging ‘digital transformation processes’ of regional industries. We regard digital transformation as consisting of three main activities; development of scientific principles, making of digital products and services, and application of these in production and work processes. The paper advocates a comprehensive framework that challenges established economic geography approaches, which propagate firm-based views and centre stage skill and technological relatedness, in interpreting how digital transformation occurs. We discuss the role of institutional environments, focus on other actors besides firms and take a broader view on assets beyond firm capabilities, skills and technological knowledge. The paper thus provides an alternative conceptual framework for understanding digital transformation processes in regional industries, which we illustrate with one example from each of the main ‘digital activities’.

Keywords: digitalisation; regional innovation system dynamics; new path development; asset modification (search for similar items in EconPapers)
JEL-codes: O33 R11 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2019
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