Digital transformation as a means to attract innovative establishments to municipalities.

This study on regional development investigates if digital transformation is a means to attract innovative establishments to municipalities. By doing so, the relationship between the availability of high-speed broadband close by and the number of innovative establishments (workplaces) across all 290 municipalities in Sweden is explored. Panel data for eleven years (2010-2021) originate from official registers. Results based on Fixed Effects Poisson estimations including spatially weighted variables indicate that the digital transformation in the guise of high-speed broadband access is important for ICT (micro) establishments and those in declining municipalities, although the proportion of highly skilled inhabitants renders stronger estimates. For high technology and R&D establishments, access to high-speed broadband is not a relevant location factor. The estimates are robust to endogeneity as tested by the control function approach. [ABSTRACT FROM AUTHOR]