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

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

Abstract

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’.

Suggested Citation

  • Arne Isaksen & Michaela Trippl & Nina Kyllingstad & Jan Ole Rypestøl, 2019. "Digital transformation of regional industries: The link between new path development, innovation system dynamics and asset modification," PEGIS geo-disc-2019_02, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wiwpeg:geo-disc-2019_02
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    References listed on IDEAS

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    More about this item

    Keywords

    digitalisation; regional innovation system dynamics; new path development; asset modification;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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