How can the benefits of digitization be harnessed to boost the competitiveness of economically weaker regions?
Discover the study in the 14th issue of regioS magazine
Digitization is triggering global economic change, and in the regions too. The 14th issue of regioS magazine is dedicated to the question of how to harness the benefits of digitization to boost the competitiveness of economically weaker regions. One thing seems clear: digitization offers new opportunities for rural, alpine and peripheral regions too, and these must be seized.
The authors of the study "Digitization and the New Regional Policy", commissioned by SECO, describe in detail the opportunities and risks of digitization in the target regions of the New Regional Policy (NRP), identify possible actions and formulate recommendations for effective digital transformation.
Rely on digital technology even in difficult conditions
According to the study, the initial digitization situation in outlying rural regions and Alpine tourist centers is indeed more difficult than in urban or peri-urban areas. Implementing the technological revolution requires infrastructure (ultra-high-speed fiber-optic Internet or 5G mobile telephony), capital and know-how. As a result, the means and resources required become increasingly scarce as distance from the center increases. There are also other unfavorable factors. Economies of scale, for example, are becoming even more important in the digital economy, with the critical threshold increasingly exceeding the regional scale. To break even, many digital business models require an inter-regional, or even better, a national or international perspective. Peripheral rural regions and Alpine tourist centers have no choice but to adapt their economic and social processes to the new technology, if they don't want to fall by the digital wayside. NPR can provide valuable support for their adaptation processes.
Support for digital ideas and models
Many NPR and Interreg projects are already based on digital processes. One example is Alp ICT, one of the four industry platforms launched ten years ago by the French-speaking cantons of Switzerland with the support of the Swiss Confederation. Today, Alp ICT focuses on digital innovation. Numerous projects and start-ups, which have been launched with the support and advice of regional innovation system (RIS) management, are also based on digital processes. Specific business models can be found, for example, in "Tecnopolo Ticino", which is run by RIS management in Southern Switzerland. This project has its origins in the "AGIRE" foundation, launched in 2011 as an NPR project. In the meantime, no fewer than 50 young companies are active in the Ticino technopark, many of them in the digital sector. Another example is the development of TECSAG Innovation AG's "Alptracker", which is supported by RIS "zentralschweiz innovativ" and featured in an article in regioS magazine. The sensor can be used to locate and monitor sheep on the Alps. The digital shepherd, who guards his flock using a cell phone, proves that digitization can open up interesting prospects that go far beyond the regional level.
Digital transformation is a ten-year project involving rapid and far-reaching changes, requiring the commitment of a wide range of players, as well as a willingness to cooperate and an entrepreneurial spirit. Rural and mountain areas require special efforts if they are to have a real chance of continuing to develop in the future. The examples described in the latest issue of regioS and the interview with Professor Marc K. Peter - who has analyzed in a study how small and medium-sized enterprises (SMEs) can succeed in the digital transformation - show some of the ways in which this can be achieved.
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