Regional diversification into green and digital economic activities – The case of UK Local Authorities

Regions are currently facing a twin transition, involving a shift towards more environmentally friendly economies as well as the digitalization of economic activities. Against this backdrop, this paper examines the geography of green, digital, and twin economic activities in the UK, utilizing a novel dataset that captures these emerging sectors through a real-time industrial classification of firms. Additionally, the paper employs a relatedness approach to analyse local capabilities in the twin domain. The results underscore the crucial role of twin activities, encompassing both green and digital elements, in facilitating regional diversification into these respective sectors.