IDEAS home Printed from https://ideas.repec.org/a/gam/jgeogr/v5y2025i1p8-d1598141.html
   My bibliography  Save this article

Contribution to Modern Economic Region Theory: Factor of Intangible Digital Resources

Author

Listed:
  • Yelena Popova

    (Transport and Telecommunication Institute, Faculty of Management and Logistics, LV1019 Riga, Latvia)

  • Olegs Cernisevs

    (StarBridge Ltd., Research Department, LV1050 Riga, Latvia)

  • Sergejs Popovs

    (Institute of Life Sciences and Technologies, Daugavpils University, LV5401 Daugavpils, Latvia)

Abstract

This article explores the transformative role of intangible resources and products such as data, algorithms, and digital platforms in redefining economic region theory. The goal of the study is to provide a framework for dealing with intangible resources and products and refining the cost calculation techniques for them. The article includes the genesis of a theoretical approach to regional development and consideration of the implications of theoretical provisions in practice. Intangible inputs have significant peculiarities compared to tangible resources, and these peculiarities require a specific approach to the management of regions, especially considering their impact on agglomeration, cost structures, and market dynamics. The research is based on a comprehensive literature review and comparison, and application of theoretical provisions to practice. The development of the cost calculation framework is based on classical cost analysis considering the peculiarities of intangible resources. The findings demonstrate that integrating intangible resources into economic region theory broadens its applicability, offering a roadmap for regions to achieve growth and resilience in the digital economy while addressing evolving global challenges.

Suggested Citation

  • Yelena Popova & Olegs Cernisevs & Sergejs Popovs, 2025. "Contribution to Modern Economic Region Theory: Factor of Intangible Digital Resources," Geographies, MDPI, vol. 5(1), pages 1-19, February.
    • Handle: RePEc:gam:jgeogr:v:5:y:2025:i:1:p:8-:d:1598141
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2673-7086/5/1/8/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2673-7086/5/1/8/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dan Andrews & Alain de Serres, 2012. "Intangible Assets, Resource Allocation and Growth: A Framework for Analysis," OECD Economics Department Working Papers 989, OECD Publishing.
    2. Leslie P. Willcocks & John Hindle & Matt Stanton & John Smith, 2024. "Maximizing Value with Automation and Digital Transformation," Springer Books, Springer, number 978-3-031-46569-7, December.
    3. Vicente, María Rosalía & López, Ana Jesús, 2011. "Assessing the regional digital divide across the European Union-27," Telecommunications Policy, Elsevier, vol. 35(3), pages 220-237, April.
    4. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    5. Sterlacchini, Alessandro, 2008. "R&D, higher education and regional growth: Uneven linkages among European regions," Research Policy, Elsevier, vol. 37(6-7), pages 1096-1107, July.
    6. Cooke, Philip, 2001. "Regional Innovation Systems, Clusters, and the Knowledge Economy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 945-974, December.
    7. Laurie Hunter & Elizabeth Webster & Anne Wyatt, 2005. "Measuring Intangible Capital: A Review of Current Practice," Australian Accounting Review, CPA Australia, vol. 15(36), pages 4-21, July.
    8. Serge Darolles, 2016. "The rise of FinTechs and their regulation," Post-Print hal-04010169, HAL.
    9. Claire Eckstein, 2004. "The measurement and recognition of intangible assets: then and now," Accounting Forum, Taylor & Francis Journals, vol. 28(2), pages 139-158, June.
    10. Dieter Ernst, 2002. "Global production networks and the changing geography of innovation systems. Implications for developing countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 497-523.
    11. Carol Corrado & Jonathan Haskel & Cecilia Jona-Lasinio & Massimiliano Iommi, 2022. "Intangible Capital and Modern Economies," Journal of Economic Perspectives, American Economic Association, vol. 36(3), pages 3-28, Summer.
    12. Silvia Semenzin & David Rozas & Samer Hassan, 2022. "Blockchain-based application at a governmental level: disruption or illusion? The case of Estonia [A systematic analysis of applications of blockchain in healthcare]," Policy and Society, Darryl S. Jarvis and M. Ramesh, vol. 41(3), pages 386-401.
    13. Yelena Popova & Olegs Cernisevs & Sergejs Popovs, 2024. "Impact of Geographic Location on Risks of Fintech as a Representative of Financial Institutions," Geographies, MDPI, vol. 4(4), pages 1-16, November.
    14. Darolles, S., 2016. "The rise of fintechs and their regulation," Financial Stability Review, Banque de France, issue 20, pages 85-92, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martina Vukašina & Ines Kersan-Škabiæ & Edvard Orliæ, 2022. "Impact of European structural and investment funds absorption on the regional development in the EU–12 (new member states)," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(4), pages 857-880, December.
    2. Ferretti, Marco & Guerini, Massimiliano & Panetti, Eva & Parmentola, Adele, 2022. "The partner next door? The effect of micro-geographical proximity on intra-cluster inter-organizational relationships," Technovation, Elsevier, vol. 111(C).
    3. Ron Boschma & Ron Martin, 2010. "The Aims and Scope of Evolutionary Economic Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 1, Edward Elgar Publishing.
    4. Emanuela Marrocu & Raffaele Paci & Marco Pontis, 2012. "Intangible capital and firms' productivity," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 21(2), pages 377-402, April.
    5. Jaya Prakash Pradhan & Mohammad Zohair, 2015. "Subnational Export Performance and Determinants," Review of Market Integration, India Development Foundation, vol. 7(2), pages 133-174, August.
    6. Chaudhary, Sanjay & Kaur, Puneet & Ferraris, Alberto & Bresciani, Stefano & Dhir, Amandeep, 2024. "Connecting entrepreneurial ecosystem and innovation. Grasping at straws or hitting a home run?," Technovation, Elsevier, vol. 130(C).
    7. Marta Gotz, 2019. "The Industry 4.0 Induced Agility and New Skills in Clusters," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(2), pages 72-83.
    8. Pradhan, Jaya Prakash & Husain, Tareef, 2021. "Drivers of SME Formation in Indian States: The Empirics," MPRA Paper 25061, University Library of Munich, Germany.
    9. Steinmueller, W. Edward, 2010. "Economics of Technology Policy," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1181-1218, Elsevier.
    10. Paulo Alexandre Neves Martinho Neto, 2011. "The Importance of Clusters for Sustainable Innovation Processes: The Context of Small and Medium Sized Regions," CEFAGE-UE Working Papers 2011_24, University of Evora, CEFAGE-UE (Portugal).
    11. Pradhan, Jaya Prakash & Zohair, Mohammad, 2014. "Subnational Export Performance and Determinants: Evidence from Two Indian States," MPRA Paper 60029, University Library of Munich, Germany.
    12. Andrés Rodríguez‐Pose, 2020. "Institutions and the fortunes of territories," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(3), pages 371-386, June.
    13. Iammarino, Simona & McCann, Philip, 2006. "The structure and evolution of industrial clusters: Transactions, technology and knowledge spillovers," Research Policy, Elsevier, vol. 35(7), pages 1018-1036, September.
    14. Simona Iammarino & Philip McCann, 2010. "The Relationship between Multinational Firms and Innovative Clusters," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 8, Edward Elgar Publishing.
    15. Moutinho, Ricardo & Au-Yong-Oliveira, Manuel & Coelho, Arnaldo & Manso, José Pires, 2015. "Beyond the “Innovation's Black-Box”: Translating R&D outlays into employment and economic growth," Socio-Economic Planning Sciences, Elsevier, vol. 50(C), pages 45-58.
    16. Liu, Meng-chun & Chen, Shin-Horng, 2012. "MNCs’ offshore R&D networks in host country's regional innovation system: The case of Taiwan-based firms in China," Research Policy, Elsevier, vol. 41(6), pages 1107-1120.
    17. Dirk Crass & Christian Rammer & Birgit Aschhoff, 2019. "Geographical clustering and the effectiveness of public innovation programs," The Journal of Technology Transfer, Springer, vol. 44(6), pages 1784-1815, December.
    18. Eyal Apatov & Arthur Grimes, 2016. "Higher education institutions and regional growth: The case of New Zealand," Working Papers 16_11, Motu Economic and Public Policy Research.
    19. Tareef Husain, 2019. "Small and Medium Enterprises Export by Indian Regions: Uncovering the Role of Spatial Factors," Review of Market Integration, India Development Foundation, vol. 11(1-2), pages 7-29, April.
    20. Lai, Xiaobing & Yue, Shujing & Guo, Chong & Zhang, Xinhe, 2023. "Does FinTech reduce corporate excess leverage? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 281-299.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jgeogr:v:5:y:2025:i:1:p:8-:d:1598141. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.