Territorial concentration and specialization in the age of digitalization: Spatial patterns of the ICT sector in the Visegrad countries

Abstract

As digital technologies continue to transform economies worldwide, understanding the spatial dimensions and the role of agglomeration economies has become increasingly important, particularly within the ICT sector. With its strong capacity for innovation and its ability to complement a wide range of industries, the ICT sector plays a key role in driving digital transformation and supporting balanced economic development.

Recognising the strategic importance of digitalisation and the ICT sector for economic growth, especially in the catching-up regions of the Visegrad countries, this study investigates the spatial dynamics and role of the ICT sector across urban and rural areas. The analysis examines the spatial concentration of the ICT sector in comparison with 11 other sectors or sector groups and explores regional specialisation at the NUTS 3 level. It distinguishes four regional types: capital, intermediate metropolitan, intermediate non-metropolitan, and rural areas, based on employment data from the period 2010–2020.

The findings underscore that digitalisation, rather than reducing the importance of proximity, reinforces the benefits of agglomeration economies in today’s evolving economic landscape. The ICT sector continues to grow dynamically and remains spatially concentrated—particularly in capital regions and certain intermediate metropolitan areas—mirroring the growing importance of modern business services in such environments.

This spatial concentration in the Visegrad countries is shaped by multiple interrelated factors. Capital regions often emerge as ICT hubs due to urbanisation advantages, especially the availability of highly skilled labour supported by quality higher education institutions. Urban areas also benefit from more advanced infrastructure suited to knowledge-intensive activities. Targeted policies, investments in education and infrastructure, business incentives, and the presence of complementary services further enhance these regions’ attractiveness to ICT firms. The high concentration of the ICT sector in capital regions highlights both the enduring relevance of agglomeration benefits and the sector’s resilience. Consequently, policy interventions should continue to prioritise digital infrastructure development, support for ICT start-ups, and the creation of an innovation-oriented business environment. Moreover, the findings indicate that regions must cultivate their own specialised economic trajectories and reinforce their competitive advantages, an approach aligned with the place-based principles of smart specialisation strategies.

Finally, the study confirms a clear division of labour between different regional types. While capital and predominantly rural areas in Visegrad countries tend to exhibit strong sectoral specialisation, intermediate regions are characterised by a more diverse economic structure. This division reflects the distinct economic roles and contributions of different types of regions to national development processes.