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Firms’ eco-innovation and Industry 4.0 technologies in urban and rural areas

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  • Luca Cattani
  • Sandro Montresor
  • Antonio Vezzani

Abstract

We investigate the extent to which firms’ propensity to eco-innovate, adopt Industry 4.0 (I4.0) technologies and leverage them to eco-innovate varies with their location. We maintain that urban firms should be more prone to eco-innovate and adopt I4.0 technologies than rural ones, and more capable to make the latter functional to the former. Using a large sample of European firms, we test and confirm these hypotheses only partially. Firms in rural areas display a higher capacity to eco-innovate notwithstanding their lower digital propensity. However, an urban location reinforces the eco-innovative impact of digital technologies, irrespectively from its size.

Suggested Citation

  • Luca Cattani & Sandro Montresor & Antonio Vezzani, 2025. "Firms’ eco-innovation and Industry 4.0 technologies in urban and rural areas," Regional Studies, Taylor & Francis Journals, vol. 59(1), pages 2243984-224, December.
    • Handle: RePEc:taf:regstd:v:59:y:2025:i:1:p:2243984
    DOI: 10.1080/00343404.2023.2243984
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