Digitally Disrupted Space: Proximity and New Development Opportunities for Regions and Cities

By Anastasia Panori

Digitally Disrupted Space: Proximity and New Development Opportunities for Regions and Cities develops an analytical framework of the key structural elements in relation to digital space and its impact on existing spatial interactions at a regional and urban level. It puts forth the argument that digital space is a new form of space acting complementary to existing spatial structures and creating novel interactions between and/or within them. It explores how digital space enhances connected intelligence by combining knowledge-intensive activities, cooperation between organisational and institutional actors, and smart environments of knowledge creation and diffusion.

Readers will better understand the connections between digital transformations and traditional paths of regional development, as well as underlying mechanisms fostering externalities and proximity emergence, triggering effective collaboration between the digital and other expressions of space. The first set of chapters (Part I) focuses on space disruptions in a digitalising world. The key notions of space and digital space are defined, alongside the main concepts that form it in relation to space dynamics, space connectors and space routines. The following group of chapters (Part II) discuss aspects related to the digital space reshaping transition processes, exploring the role of digital space under the multi-level perspective and the digital space in the forefront of twin transition. Finally, the last three chapters (Part III) focus on digital space challenges and opportunities for regional development. A specific focus is given in three key areas of regional development and the ways in which digital space can enhance them, including Productivity, Resilience and Inclusion.

Academics and researchers will find insights into how cities and regions can adopt this new developmental paradigm; how to organise connected intelligence within regional and urban environments; and how to sustain productivity, resilience and inclusion through the use of digital space. Digital transformation managers in the public sector and entrepreneurs in private organisations can leverage the opportunities offered from this transition process, not only by identifying actions and strategies for boosting their productivity, but also for making them more resilient during socio-economic, environmental and health crises. And professionals and policymakers in urban and regional development will find concrete guidance about the design, development and management of the digital space and the creation of connected intelligence environments at the urban and regional level.

• Thoroughly analyzes the role of digital space to complement existing structures and generate new interactions and networks, revealing the digital elements that are essential for the rise of new dynamics, connectors and routines
• Positions the digital space emergence under the framework of a multi-level transition perspective, shedding light on how digital space reshapes transition processes
• Explores the potential challenges and opportunities arising from the emergence of the digital space for regional development

• Language: English
• Publisher: Elsevier Science
• Release date: Feb 15, 2024
• ISBN: 9780443141515

Anastasia Panori

Anastasia Panori is an Assistant Professor at the School of Spatial Planning and Development of Aristotle University of Thessaloniki. She holds a master’s degree in Economics (University of Macedonia, Thessaloniki) and a PhD in Economic and Regional Development from Panteion University of Athens. Her work has been published in top academic journals. She has contributed to generating more than €10 million through research and consultancy projects, mainly supported via European funding schemes (H2020, Horizon Europe), and she has worked as an expert for the European Commission and the Greek National Documentation Centre. Anastasia serves on the editorial boards of REGION and IET Smart Cities, and she has been invited to edit Special Issues on the digital transition of regional and the future of cities for Regional Studies and Frontiers in Sustainable Cities. She also co-edited the Greek book “Spatial planning in the digital age” (Kritiki).

Book preview

Introduction: Investigating the dynamic nature of space and the impact of digital transformations

Everything flows.

Heraclitus

The ancient Greek quote πάντα ῥɛῖ (panta rhei) was famously attributed to the philosopher Heraclitus. It can be translated as everything flows or everything is in a state of flux. This quote highlights the constant change and evolution that characterizes everything, space included, as well as the interconnectedness of the various elements within it. It suggests that just as a river is never the same from moment to moment, so too is space constantly changing and adapting to new technologies and human interactions. This can also be interpreted as a call to embrace change and to be open to new possibilities in this new digital era.

The book offers an in-depth analysis of the influence of digital transformation on our perception, utilization, and understanding of urban and regional space. It sheds light on the creation of digital spaces, modifications to physical space, changes to social relationships, and the emergence of new organizational structures as some of the significant impacts of digital transformation. Moreover, the book delves into the complex interplay between space and proximity, which relies on various physical, social, and cultural factors. It underscores the significance of comprehending this connection for designing effective communication, collaboration, and knowledge-sharing strategies in diverse contexts, including regions and cities.

By examining the impact of digital transformation on space, the book offers insights into the evolving role of technology in shaping contemporary societies and economies. It discusses how digital transformation is influencing spatial dynamics, social relationships, and organizational structures, and the potential implications of these changes for productivity, sustainability, and inclusion. Additionally, the book emphasizes the need for a holistic approach to space design, which considers the intricate interdependence between physical, social, and cultural factors. Such an approach is crucial to creating spaces that promote effective communication, collaboration, and knowledge sharing and foster sustainable and inclusive development in regions and cities.

The book suggests that transforming space into proximity requires strategies that break down physical, social, and cultural barriers to communication and collaboration among actors, whether in a physical or digital environment. Building networks and relationships between actors is one way to achieve this, which includes creating opportunities for them to meet, exchange ideas, and collaborate. Online platforms enable this in digital space, allowing people and organizations to connect and share information irrespective of physical location. Another way is to establish shared values, goals, and strategies around a common purpose. This could be achieved through developing shared policies, initiatives, or projects that address mutual challenges or opportunities. The use of digital tools with a similar organizational approach by businesses, local authorities, and other stakeholders also contributes to this direction.

Therefore, the book defines the notion of digital space as the virtual environment where digital interactions occur, encompassing all digital platforms and tools that facilitate communication and collaboration among individuals and organizations. It is a space where proximity can be created and enhanced through the use of digital technologies, leading to novel socio-technical regimes.

Increasing proximity among actors can promote collaboration, knowledge sharing, and innovation while addressing various challenges, including regional development and organizational management. Therefore, exploring digital space and its relationship with proximity has become critical for regional development strategies. The book elaborates on the different forms of proximity, such as geographical, institutional, cognitive, social, and organizational proximity, and their connection to digital space. For instance, digital space can enhance institutional proximity by facilitating communication and collaboration among different organizations. This is particularly relevant for regional development, where cooperation among stakeholders is crucial for achieving shared objectives. Supply chain management systems and online marketplaces, as digital platforms, can simplify business processes and improve communication between suppliers and customers. Moreover, digital technologies can promote collaboration and knowledge sharing among various organizations, such as online communities and social media, thereby increasing innovation, efficiency, and adaptability to changing market conditions.

Based on the discussion above, three key research questions that arise from the relationship between digital transformations and the notion of urban and regional space are:

•How does the integration of new digital technologies affect our understanding and application of traditional spatial concepts? This inquiry investigates how digital space, encompassing collaboration and social media platforms, is altering individuals' interactions with physical spaces, like business offices and public areas. Additionally, it scrutinizes the degree to which digital space is substituting or augmenting physical, institutional, organizational, and social space, and how it is influencing regional and urban development practices.

•In what ways does digital space influence the spatial dynamics that shape contemporary societies and economies? This inquiry delves into how digital technologies are altering the character of social connections and interactions, and how this is affecting spatial dynamics. For instance, it concentrates on how online communication technologies impact social networks and community formation, or how digital technologies shape participatory vision building and prioritization in strategies and action plans.

•How is digital space connected to productivity, sustainability, and inclusion? This question aims to comprehend how digital technologies can strengthen or challenge productivity, sustainability, and inclusion. For instance, how digital spaces influence working environments, technology acceptance, and business strategies.

The book is divided into three sections and nine chapters, each of which addresses a crucial thematic area of the digital space framework. Part I (Chapters 1–4) examines the disruptions that are occurring in the digitalizing world and provides an overview of the concept of space. This section defines digital space and explores its main components, including space dynamics, space connectors, and space routines.

In Chapter 1, the concept of space is explored, which has been the subject of much debate throughout history. Over time, numerous definitions and approaches have been proposed to describe space and its attributes. This chapter serves as an introduction to the book and presents a concise overview of the diverse definitions of space, beginning with the early interpretations centered around absolute conceptions of space and transitioning to relative conceptions.

Chapter 2 of the book focuses on the fundamental dynamics that shape modern societies and economies by examining the interplay between various spatial elements. Dynamic processes, such as agglomeration economies, organizational structures, and mobility patterns, are analyzed by breaking them down into their essential components to reveal the underlying mechanisms that drive them. The chapter investigates how technology facilitates these processes and explores ways in which it can address the limitations of traditional forms of space. The role of digital space in enhancing agglomeration economies, identifying which organizational structures can benefit from new technologies, and how digital space influences changes in mobility patterns are also discussed.

Chapter 3 of the book centers on obtaining a more extensive comprehension of the elements that serve as connectors among various space entities, such as relations between individuals, organizations, institutions, regional infrastructures, and knowledge spillovers. The objective is to establish a dynamic viewpoint of space formation. Specifically, the chapter emphasizes the need to comprehend the diverse forms of externalities emerging in space, encompassing its various aspects, with a particular emphasis on the impact of technological advancements.

Chapter 4 delves into the fundamental components of externality formation, with proximity in its various forms playing a crucial role in diversification. The chapter begins by examining routines and their connections to productivity and innovation processes. Through empirical examples, the analysis dissects routines into their main entities and identifies digital elements that can be leveraged to replicate these routines in the digital space, thereby enhancing externalities. The objective of this chapter is to establish a tangible theoretical link between the abstract concept of externalities and the tangible elements of the digital space.

Part II (Chapters 5 and 6) delves into the impact of digital space on transition processes, examining its role from a multilevel perspective and its significance in the twin transition.

Chapter 5 focuses on providing a holistic view of the transition processes related to digital space by integrating the previous chapters. The chapter begins with an introduction to the theoretical frameworks developed under the multilevel perspective of technological transition. It then progresses toward a detailed explanation of the different levels involved in the transition process of digital space. The chapter culminates by highlighting the significance of transition pathways, which facilitate a smooth and effective transition to digital space. These pathways are contextualized with real-life examples of successful transitions to digital space, and their applicability to future transitions is also discussed. Overall, this chapter aims to provide readers with a comprehensive understanding of the multilevel transition processes involved in the adoption of digital space.

Chapter 6 of this book delves into the role of digital space in facilitating the twin transition, which encompasses both the green and digital transformations. While previous research has largely focused on technical aspects, such as the impact of digital technologies on reducing greenhouse gas emissions, there is a growing recognition of the importance of multidisciplinary approaches that also consider nontechnical aspects. This chapter aims to provide insights into the underlying mechanisms and effects of the twin transition, as well as strategies to make the transition more efficient. Furthermore, the chapter highlights the role of digital space in addressing technical, sustainability, and social aspects of the twin transition. Finally, the twin transition is seen as a means of bringing together business and institutional actors to bridge the top-down EU Industrial Strategy initiatives with bottom-up regional ecosystems.

Finally, Part III (Chapters 7–9) analyzes the challenges and opportunities presented by digital space for regional development. The section focuses on three key areas of regional development: productivity, resilience, and inclusion, and explores how digital space can be leveraged to enhance these areas.

Chapter 7 explores the impact of digital space on productivity, with a focus on three channels that have been affected by its proliferation: working conditions, technology adoption, and business models. Each case study delves into the potential mechanisms through which digital space can facilitate novel socio-technical regimes based on the disruptive effects it triggers in terms of generating proximity. The chapter takes an enhanced industrial transformation perspective toward productivity, which incorporates various channels of digital space opportunities' diffusion.

Chapter 8 focuses on exploring the concept of resilience and its connection to digital space. Resilience is a crucial element that is closely related to regional transformation processes as it determines a region's ability to adapt and recover from external shocks and transitions. In this context, the chapter examines the relationship between digital space, resilience, and green transition processes. It begins by exploring how digital applications have impacted resilience in recent shocks, such as climate change and natural disasters, COVID-19, and the energy crisis. The chapter then delves into specific expressions of digital space, such as cyber-physical systems and human-machine networks, which have been identified as significant for boosting resilience through R&I programs. It identifies specific areas of application for these technologies, including smart grids, digital services, autonomous vehicles, and robotics. Finally, the chapter provides an overview of the current EU policy framework related to resilience, the EU Green Deal, and discusses how digital space can be integrated to foster its potential