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Digitalisation and the foundational economy: A digital opportunity or a digital divide for less-developed regions?

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  • Laura Reynolds
  • Dylan Henderson
  • Chen Xu
  • Laura Norris

Abstract

The foundational economy’s heightened traction in academic and policy discussion stems in part from its potential to mitigate challenges faced by less-developed regions. While supporting foundational sectors may contribute to inclusive and sustainable growth, we question whether digitalisation can enable these aims. Through a case study of Wales, we point to the differences in digital capability of foundational and non-foundational businesses in urban and rural parts of the region. We show that while investment in digital infrastructure and digital technology use may support the foundational economy, digital barriers risk countering the benefits of its sectors’ embeddedness and exacerbating spatial divides.

Suggested Citation

  • Laura Reynolds & Dylan Henderson & Chen Xu & Laura Norris, 2021. "Digitalisation and the foundational economy: A digital opportunity or a digital divide for less-developed regions?," Local Economy, London South Bank University, vol. 36(6), pages 451-467, September.
    • Handle: RePEc:sae:loceco:v:36:y:2021:i:6:p:451-467
    DOI: 10.1177/02690942211072239
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    1. Yicheng Song & Yuantao Jiang, 2024. "How Does the Digital Economy Drive the Optimization and Upgrading of Industrial Structure? The Mediating Effect of Innovation and the Role of Economic Resilience," Sustainability, MDPI, vol. 16(4), pages 1-16, February.

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