The effect of ICT use and capability on knowledge-based cities

In the information society, ICT (Information and Communications Technology) use and capability are regarded as keys to economic growth. Use of these ICTs depends on the access and ability of citizens, while capability primarily depends on government investment in Research and Development (R&D) and the degree of development of technology-related sectors. Using information society and science and technology statistics for NUTS 2 statistical regions from the Eurostat database, we construct two synthetic indices for cities based on ICT use and capability, and these are used to group the cities into clusters. We then study the relationship between the ICT indices and economic development, taking wealth and intellectual capital as a measurement of knowledge-based European cities. The results show that both factors, use and capability, are significant but particularly so regarding investment in R&D and the development of ICT sectors. (C) 2016 Elsevier Ltd. All rights reserved.