The implications of innovation in traditional industries: Revitalizing mature economic sectors

Abstract

This research explores the implications of innovation in traditional industries in response to the need to deploy digital technologies to revitalize mature economic sectors. Despite being essential to regional and national economies, traditional industries face challenges due to globalization and new technologies. Embracing modern technologies can enable such industries to respond to these challenges, thereby revitalizing mature economic sectors and creating opportunities for economic growth. This study emphasizes the value of working with local communities to preserve craft techniques and the role of innovations in vocational training covering business management and digital marketing. The study also emphasizes the importance of partnerships between traditional manufacturers and companies in modern industries and the creation of innovative products that combine advanced technologies with traditional manufacturing methods. Furthermore, it emphasizes the relevance of implementing green innovations and their impact on the sustainability of traditional industries. SmartPLS 4 software was used to perform partial least squares structural equation modeling (PLS-SEM). The analysis provides detailed indications of how technological innovations can transform traditional industries. The results can be applied to support the adoption of innovative strategies to foster the development and modernization of traditional industries. The study has implications on many levels, from developing regional economies and improving the sustainability of traditional industries to creating opportunities for training and cross-sector collaboration.