Policy to support digitalisation of industries in various regional settings: A conceptual discussion

Abstract

ABSTRACT The purpose of the article is to analyse regions’ varying preconditions for digitalisation of industry and, on that basis, discuss regionally tailored policy strategies to stimulate digitalisation. Building on both regional innovation system and asset modification approaches, the authors suggest a theoretical framework that identifies regions’ potential for digitalisation from their stock of relevant assets at the firm and innovation system level. The analysis identifies four types of regions with different preconditions for supporting digitalisation of industries. This in turn provides the foundation for a discussion of the role of actor-based and system-based policy strategies to support digitalisation in each type of region. From the existing literature, the authors discuss empirical examples of digitalisation within each of the four types of regions but also highlight that individual regions need to tailor the portfolio of policy support within the identified strategy, as each region is structurally and institutionally unique.