Demographic Shifts and Digital Innovation in the Public Sector

By: Manuel Di Loreto, Kohei Suzuki, Mehmet Akif Demircioglu

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eText | 23 May 2025

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This book examines the impact of demographic decline on digital innovation in the public sector. Utilizing data from Italian municipalities, it provides quantitative and qualitative analyses to reveal the negative impact of demographic decline on digital innovation, which presents a unique challenge for policymakers seeking to foster technological advances in a shrinking, ageing society. This book also investigates the roles of macro-level social, economic, demographic, and administrative factors in the innovation of public organizations.

By highlighting these broader demographic dynamics, this book challenges existing theories of public sector innovation, urging greater attention to slow-moving external factors as critical drivers of long-term innovation strategies.