4.0 Technological transformations: heterogeneous effects on regional growth

Abstract

Technological transformations based on 4.0 technologies are a reality. Despite this, there are few studies on their growth-enhancing role at regional level. This paper aims to fill this gap. By conceptually unpacking the two main technological transformations taking place–Industry 4.0 and the digital service economy–and identifying empirically the regions where they prevail, the paper examines whether the two transformations, despite of their profound different nature, are both conducive to regional growth in the period 2007–2018. Empirical results interestingly show that Industry 4.0 and automation technology adoption are associated with regional economic growth especially in those regions where such specific transformation prevails; differently, the effects from digitalisation spread all over European regions and regions where the digital service economy transformation prevails do not enjoy significant growth advantages with respect to others. Targeted regional policies are therefore called for by each transformation.