Digital transformation of regional industries through asset modification

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

Publications: Contribution to journalArticlePeer Reviewed

Abstract


Purpose

This paper aims to develop a conceptual framework for analysing wide-ranging digital transformation processes of industries in regional contexts.
Design/methodology/approach

The paper includes theoretical work to create a conceptual framework. The paper illustrates and advances the framework by analysing examples from two clusters, one focused on the production of digital products and services and one centred on applying digital tools to make firms’ existing activities more efficient.
Findings

The paper distinguishes between three main and interlinked categories of digitalisation; development of scientific principles that form the basis for developing digital technologies; making of digital products and services; and application of these in production and work processes. Digital transformation of industries located in particular regions relate to changes of (regional) innovation systems. The authors interpret this as processes of asset modification, distinguishing between re-use of existing assets, creation of new assets and (strategic) destruction of outdated assets. Digital transformation may lead to various forms of innovation and path development activities in regional economies.
Practical implications

The paper highlights the importance of modification of assets in organisations and at the level of regional innovation systems to support digitalisation. Organisations need to build absorptive capacity for digitalisation. Regional innovation systems face the challenge to build relevant common assets.
Originality/value

The paper advocates a comprehensive framework to better understand how digital transformation unfolds. It challenges established economic geography approaches, which propagate firm-based views and centre stage skill and technological relatedness. An alternative conceptual framework for scrutinising digital transformation processes in industries in regional contexts is presented.
Original languageEnglish
Pages (from-to)130-144
Number of pages15
JournalCompetitiveness Review
Volume31
Issue number1
DOIs
Publication statusPublished - 17 Jan 2021

Austrian Fields of Science 2012

  • 507026 Economic geography

Keywords

  • Asset modification
  • DEMAND
  • DIVERSIFICATION
  • Digitalisation
  • INNOVATION SYSTEMS
  • Innovation
  • New path development
  • O33
  • OFFSHORE WIND
  • PATH CREATION
  • POLICY
  • R11
  • Regional innovation system dynamics

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