Examining the Spatial Effect of “Smartness” on the Relationship between Agriculture and Regional Development: The Case of Greece

Abstract

Digital transformation in farming via smart farming technologies (SFTs) is highly considered to stimulate sustainability in the food market and agriculture, as well as to promote viability in the agricultural sector and the prosperity of rural areas. In Greece, a great number of SFTs were financed through Action 4.1.1, by the EU’s Rural Development Program, supporting agricultural production and promoting sustainable regional development. Within this policy context, this paper aims to examine the transformation level that “smartness” induced in the relationship between agriculture and regional development in Greece. To do so, it builds a multilevel methodological framework thematically describing both “traditional” and smart agriculture in terms of spatial demand, transportation cost, knowledge intensity, and economies of scale, which are theoretically and empirically considered as major pillars related to regional development. The analysis is applied regional data (NUTS 3) in Greece, focusing on the detection of significant spatial and functional changes in the thematic model developed with respect to the proposed methodological framework. Findings provide insights into the effect that the SFTs can have on sustainable regional development, based on the reasoning of relevant background regional economic theories.