Digitalisation and the foundational economy: A digital opportunity or a digital divide for less-developed regions?. (September 2021)

• Record Type: Journal Article
• Authors: Reynolds, Laura; Henderson, Dylan; Xu, Chen; Norris, Laura
• Is Part Of: Local economy. Volume 36:Number 6(2021)
• Page Start: 451
• Page End: 467
• Publication Date: 2021-09
• Subjects: Foundational economy -- digital divide -- place-based policy -- embeddedness -- inclusive growth -- digital capability; Great Britain -- Economic policy -- Periodicals; 330.941
• DOI: 10.1177/02690942211072239
• Languages: English
• ISSNs: 0269-0942

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.