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

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’.