Mapping European high-digital intensive sectors—regional growth accelerator for the circular economy

Abstract

Globalization and the Fourth Industrial Revolution or Industry 4.0 act as shocks on regional labor markets and regional economies. The presence of a digital economy has high spillover effects on regional development, job creation, economic resilience, and sustainability; furthermore, it valuates eco-innovation and the clean economy. We believe that the process of digital transformation has a robust impact on the green and clean aspects of the entire economy. The consistency of high digital-intensive (HDI) sectors can be evaluated through high digital-intensive employment, human resources, and technological infrastructure, as these are the main pillars of digital transformation. The shift-share analysis method (SSM) is used in this study on employment growth during 2008–2018 for the EU27, the United Kingdom, and Norway, combined with a second stage of exploratory spatial data analysis (ESDA). The findings on national growth, industrial mix, and competitiveness are presented in GIS mapping system considering the Local Indicators of Spatial Association (LISA) technique at the NUTS2 level. This approach allows us to determine the clustering level of high digital-intensive employment and sectors, resilience based on connectivity and eco-innovation, and the regional potential of digital transformation. Policymakers and political or governmental decision-makers could consider the results of the present study as the starting point for developing and implementing their policies for a sustainable green regional economy and determine the emerging area patches that need to be stimulated.