[5] Business Enterprise in the Information Society - the Regional Dimension

The information society and knowledge economy is touching down across Europe with varying results. This variation in the development of the information society is directly related to the business base and industrial structure of European regions - this can be described and measured by industry sector, type of company and market orientation.

Sectors range from low value to high value industries, for example, low value agricultural sectors versus high value financial services. These sectors can also be classified according to their geographical location and market orientation (export or local consumer market). Depending on the sector profile the uptake and penetration of ICT will vary. The variation in ICT use is related to the changing level of technology and knowledge intensity of the sector - that is to say, as sectors become higher value added they tend to be more technology and knowledge intensive.

The type of company in relation to its size or scale also directly affects the uptake and use of ICT applications, but also will partially determine the type of applications required. The number of start-up and micro companies in relation to Small and Medium Sized companies (SMEs) to large companies will define a level of regional complexity required for ICT applications and services, creating a varying ICT demand map. The application of ICT across these company types will also reflect the nature of the company - a fast paced, high growth start-up or micro enterprise, an established and moderate growth SME, or a large and mature slow growth company.

The third factor for measuring the industrial structure is the market orientation of the regional business stock - are they operating in the export market or do they serve local consumption and service needs. This will influence the scale of the market for technology, including the provision of ICT infrastructure such as broadband. Market orientation will also reflect the vertical integration of a company - are they forward or backward linked, where are they in the supply chain?

Equally important for the industry sector and company size is its geography - is it urban or rural, rural traditional, traditional industrial urban, new industrial urban? Does the industry and company need to be in a city-region? The comparative scale of the public and private sector is also important in breaking down the industrial classification and thus ICT demand.