Iulia Siedschlag (p), Juan Duran

Torben Dall Schmidt

There is growing evidence on increasing productivity differentials between firms within countries. While between-firm productivity inequalities might be of less concern relative to inequalities between individuals, they can indicate a slowdown of technology and innovation diffusion within countries and regions from high-productivity to low-productivity firms, translating into lower aggregate productivity growth and unfavourable welfare implications. Furthermore, rising productivity differentials between firms could result in increased regional inequalities with potential unfavourable social and economic consequences. Existing evidence on factors driving such productivity inequalities between firms within regions is scarce. This paper contributes novel evidence that could help fill this evidence gap in light of growing evidence on a positive impact of digitalisation on productivity. Specifically, we examine the effects of digitalisation across firms, measured as the speed of internet connection, on productivity differentials between firms across regions. We use microdata from ten waves of the Survey on E-commerce and ICT over 2014-2023 made available under controlled access by Ireland’s Central Statistics Office. Our identification strategy uses an instrumental variables (IV) approach that leverages industry variation in ultra-fast broadband usage to account for potential endogeneity in the relationship between fixed broadband usage and productivity dispersion between firms within regions. The results of this research inform policies aimed at a more balanced regional development.

Ioana Bejenaru (p), Bogdan-Constantin Ibănescu, Corneliu Iațu

Iulia Siedschlag

Smart city concepts and quality of life have become fundamental to the sustainable development of urban areas in the current digital age. The two concepts are connected, as the application of innovative technologies in the development of a Smart City can make a visible and significant contribution to improving the quality of life of its inhabitants. The two concepts are linked because the application of innovative technologies in the development of a smart city can visibly contribute to improving the quality of life of its inhabitants.
This study analyses this relationship in the context of the city of Iasi. The research method is based on the collection, analysis, and interpretation of the particular data of Iasi city, but also with specific references for the territory of Romania or that of the European Union, with emphasis on objective indicators relevant to both concepts and how the rapid development of initiatives influences the quality of life. These indicators include the efficiency of technological infrastructure, access to public services, the level of digital connectivity, pollution, social equality, and the residents' satisfaction with local government. The impact of implementing intelligent technologies on the community's quality of life is assessed using a rigorous set of criteria (related to the six general smart directions).
The results include a detailed picture of the current state of Iasi Municipality in terms of smart city concepts and quality of life, identifying areas that need to be optimized, and developing recommendations for developing these two areas. This study makes an essential contribution to the understanding of urban development and the impact of implementing smart technologies on the quality of life in an urban environment, favoring the evolution towards a more sustainable urban environment.

Torben Dall Schmidt (p)

Ioana Bejenaru

The use of new technologies and innovation has been emphasized as an important for growth generally and regional development in particular. Recently, digitalization has been set forth as essential for applications in of new technologies. Information and communication technologies may for example be essential for the use of artificial intelligence (Xiao and Boschma, 2023). Also, the use and diffusion of Industry 4.0 depends on capabilities and regional potentials (Corradini, Santini and Vecciolini, 2021; Balland and Boschma, 2021). While new technologies in terms of Industry 4.0 may be important for regional development, this may depend on local contexts.

This paper considers the factors important for using different technologies associated with Industry 4.0. The point of departure is the decision to use a technology at the firm level, as different structures in firms may shape the abilities to exploit opportunities in new technologies. Secondly, the paper considers the importance of local contexts and capabilities in using such technologies. These comprise agglomeration measures, general socio-economic structures and infrastructure supporting the use of technologies. The analysis is based on the SOEP-LEE2 data for Germany matched with data for regional structures of the firm location. Results show that there are important differences in factors at firm and regional level promoting the use of different technologies, which points to spatial heterogeneity of successful implementation.