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Digitalization and innovation: a regional perspective on their interaction

Author

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  • Monica-Mihaela MAER MATEI

    (National Scientific Research Institute for Labour and Social Protection Bucharest, Romania)

  • Andreea-Monica MUNTEANU

    (National Scientific Research Institute for Labour and Social Protection Bucharest, Romania)

Abstract

Digitalization influences innovation in both positive and negative ways. It can create new opportunities for companies to develop solutions, but it also poses challenges, such as security concerns and the digital divide. This study analyses the correlation using regional data from the Regional Innovation Scoreboard, the most comprehensive innovation measurement tool. Our findings are based on results from canonical correlation analysis and correspondence analysis. We have identified a direct correlation between the two canonical dimensions, which may be weakened by significant regional diversity. The findings show that lower digitalization levels are linked to reduced innovation performance, while the most innovative regions tend to be highly digitalized.

Suggested Citation

  • Monica-Mihaela MAER MATEI & Andreea-Monica MUNTEANU, 2024. "Digitalization and innovation: a regional perspective on their interaction," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(4(641), W), pages 5-16, Winter.
    • Handle: RePEc:agr:journl:v:xxxi:y:2024:i:4(641):p:5-16
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    References listed on IDEAS

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    1. Radicic, Dragana & Petković, Saša, 2023. "Impact of digitalization on technological innovations in small and medium-sized enterprises (SMEs)," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    2. Mina Nasiri & Minna Saunila & Juhani Ukko & Tero Rantala & Hannu Rantanen, 2023. "Shaping Digital Innovation Via Digital-related Capabilities," Information Systems Frontiers, Springer, vol. 25(3), pages 1063-1080, June.
    3. Hernández de Rojas, Félix & Pita, Pilar Rodríguez & Pérez Martínez, Jorge Emiliano, 2024. "Assessing the European association between digitalization and innovation," Telecommunications Policy, Elsevier, vol. 48(7).
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    Keywords

    SMEs; digitalization; innovation; NUTS2.;
    All these keywords.

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