Exploring the Regional Interactions between Digitalisation and Innovation in the EU

In recent years, innovation and digitalisation have progressed rapidly due to technological advances. Unfortunately, these accelerated advancements deepen the already existing regional differences between developed and developing countries. This research investigates the regional associations between innovation and digitalisation across 193 European regions using data mining techniques. The Regional Innovation Scoreboard 2025 is employed to characterise the European innovation and digitalisation systems. Principal Component Analysis facilitates the identification of two components defining the innovation and digitalisation activities. Based on the scores obtained, two categorical variables are defined to assess the innovative and digital performances at the regional level. Multiple Correspondence Analysis is employed to classify the NUTS 2 regions into performance groups, taking into consideration the innovation and digital capabilities, along with their location. Mainly, the results indicate a positive relationship between digitalisation and innovation in Europe, although these associations vary by geographic location. Regions in Northern and Western Europe exhibit higher levels of digitalisation and innovation, whereas many regions in Central, Eastern, and Southern Europe show lower capacities for innovation and digitalisation. European capitals stand out from the rest of the regions. Regional disparities are observed among European capitals: Central-Eastern capitals are struggling with their innovation processes, while Western and Northern capitals are recognised as leaders in innovation. The results are relevant for policymakers, implying that territorial specificities should be considered when designing and targeting investments in digitalisation and innovation.