Skills-based on technological knowledge in the digital economy activity

TL;DR

This study quantifies how technological knowledge influences regional digital economic activity in Minas Gerais, Brazil, highlighting the importance of educational and technological infrastructure for regional development.

Contribution

It introduces a quantitative, cross-sectional analysis linking technological knowledge to digital economy activity using advanced statistical and machine learning methods.

Findings

Technological knowledge significantly impacts digital economic activity (R2=0.749).

Higher presence of universities and IT occupations correlates with increased digital activity.

Development disparities suggest need for government initiatives supporting technological skills.

Abstract

This research seeks to measure the impact of people with technological knowledge on regional digital economic activity and the implications of prosperous cities' contagion effect on neighbouring ones. The focus of this study is quantitative, cross-sectional, and its design is correlational-causal. This study covers seven micro-regions of Minas Gerais in Brazil, organized in 89 municipalities, with 69% urban population and 31% rural. The data used consisted of 4,361 observations obtained in the Brazilian government's public repositories, organized into panel data, and analysed using partial least squares, micro-regional spatial regression, and identification patterns with machine learning. The confirmatory analysis of the regression test establishes a significant impact between the CE's technological knowledge and the digital economic activity AED through a predictive value of R2 = .749, \b{eta} = .867, p = .000 (value t = 18,298). With high notoriety among the variables, public and private university institutions (IUPP), professors with doctorates and masters (DCNT), and information technology occupations (CBO). A geographic concentration of companies that demand technology-based skills had effects by slowing down the development of small municipalities, suggesting the development of new government technology initiatives that support new business models based on technological knowledge.