When Digital Growth Crosses Borders: How Europe’s Regions Influence Each Other’s Competitiveness
Researchers from the Information Processing and Telecommunications Center (IPTC) at the Technical University of Madrid (UPM) have revealed how digital transformation spreads unevenly across Europe — and how it directly shapes regional competitiveness. Their article, published in Telecommunications Policy (Elsevier, 2025), analyzes 240 European regions (NUTS2) using Eurostat indicators and the EU Regional Competitiveness Index to uncover patterns of spatial spillovers — the process through which digital progress in one region influences its neighbors.
Through advanced spatial statistics (Moran’s I) and K-means clustering, the study identifies three digital behaviors with the strongest cross-regional effects: online banking, digital interaction with public authorities, and e-commerce. The findings show that both digitalization and competitiveness are highly nationalized phenomena, with spillovers mainly occurring within each country and limited diffusion across borders. Capital regions emerge as digital and economic “hotspots,” while southern and eastern European areas remain at risk of being left behind.
The study’s authors — Félix Hernández de Rojas, Pilar Rodríguez Pita, and Jorge E. Pérez Martínez — highlight that these dynamics could challenge the EU’s ambition for a truly integrated Digital Single Market. They call for cross-border cooperation policies, stronger digital infrastructure harmonization (including 5G deployment and cloud interoperability), and investment in advanced digital skills to stimulate competitiveness in lagging regions.
The research offers valuable guidance for policymakers and European institutions involved in initiatives such as the Digital Decade 2030 and the Competitiveness Compass, providing evidence-based insights to help reduce regional inequalities and foster a more connected, resilient, and competitive Europe.
By demonstrating how digital transformation drives economic strength through spatial interdependence, the IPTC team sheds light on Europe’s digital geography — and its untapped potential for cohesion and growth.
Bibliographic reference:
Hernández de Rojas, F., Rodríguez-Pita, P. & Pérez-Martínez, J.E. The phenomena of spatial spillovers of digitalization and competitiveness inside European regions. Telecommunications Policy, 49 (7), pp. 102989, https://doi.org/10.1016/j.telpol.2025.102989
Related information:
If you want to better understand the content of the research, you can see the article of Félix Hernández de Rojas published at the Communication Room of Telefónica: https://lnkd.in/dTd_hqRS
Jorge Emiliano Pérez Martínez: GS/ ORCID / LinkedIn
Félix Hernández de Rojas: ORCID / LinkedIn
Pilar Rodríguez Pita: ORCID /LinkedIn
For more information: www.iptc.upm.es
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