Digitalization and innovation: a regional perspective on their interaction

Digitalization influences innovation in both positive and negative ways. It can create new opportunities for companies to develop solutions, but it also poses challenges, such as security concerns and the digital divide. This study analyses the correlation using regional data from the Regional Innovation Scoreboard, the most comprehensive innovation measurement tool. Our findings are based on results from canonical correlation analysis and correspondence analysis. We have identified a direct correlation between the two canonical dimensions, which may be weakened by significant regional diversity. The findings show that lower digitalization levels are linked to reduced innovation performance, while the most innovative regions tend to be highly digitalized.