Digitalization of Entrepreneurial Ecosystems and Smart Specialization: The Importance of Place Specific Factors

Abstract

This dissertation explores the intersection of digitalization, entrepreneurial ecosystems, and smart specialization, emphasizing the critical role of place-specific factors within the European Union. It investigates the adoption of digital web technologies across European regions, analysing how local contexts influence digital entrepreneurial activities and smart specialization initiatives. Using a mixed-method approach, by combining spatial analysis, econometric modelling, and technology specific studies, the research examines the relationship between place specific factors, digital complexity, relatedness, and economic outcomes. Three key research questions guide the study: (1) How does the local context connect entrepreneurial ecosystems with smart specialization frameworks? (2) What role does geographic location play in digital technology adoption? (3) How do digital complexity, relatedness, and technology adoption affect regional productivity in the EU? The study draws on a novel and comprehensive dataset on web technology adoption and uses complexity, spatial and economic analysis methods to address these questions. The results reveal that high relatedness density, representing the closeness of new technologies to existing capabilities within a region, significantly facilitates technology adoption. Regions with greater cognitive and technological proximity are more likely to embrace and integrate related web technologies. While regions with higher digital complexity tend to exhibit greater rates of technology adoption, saturation effects can limit further growth in highly advanced areas. Spatial spillovers and agglomeration effects also play a crucial role in driving technology adoption, as advancements in neighboring regions influence local progress. The study underscores notable disparities between core and peripheral regions in terms of technology adoption, digital complexity, and economic performance. Place-specific factors, such as geographic location, local infrastructure, and human capital, are shown to be pivotal in shaping these outcomes. However, the research uncovers paradoxical findings, including a negative link between digital complexity and regional productivity, as well as the uneven distribution of digital transformation benefits across regions. It also highlights barriers such as path dependence, uneven benefits of digital transformation, and the absence of integrated digitalization frameworks in regional innovation policies.