Economic Benefits and Challenges of Technological Innovation and Industrial Upgrading in the Greater Bay Area

Keywords

Advanced materials, Automation, Collaboration, Competitiveness, Digital platforms, Digitalization, Diversification, Harmonization, Human capital, Industry-specific training, Knowledge-intensive activities, Regional integration, Renewable energy, Research and development (R&D), Sectoral transformation, Skill gaps, Skilled workforce, Specialization, Sustainability, Talent exchange, Talent mobility, Technological adoption, Technological advancements, Transportation infrastructure, Vocational training

China's Greater Bay Area (GBA) has experienced remarkable economic growth and competitiveness in recent years, driven by a strong focus on technological innovation and industrial upgrading. This introduction will provide an overview of the economic benefits and enhanced competitiveness observed in the GBA and the challenges and risks associated with these developments.

The available evidence demonstrates the positive impact of technological innovation and industrial upgrading on the GBA's economic performance. The region's GDP growth has consistently outpaced the national average, with the GBA's GDP reaching 11.6 trillion yuan (approximately 1.7 trillion USD) in 2019, accounting for 12% of China's total GDP (China Development Institute, 2020). This impressive economic growth can be attributed, in part, to the region's emphasis on technological innovation, as indicated by the strong positive relationship between research and development (R&D) expenditure and GDP growth (Wang et al., 2021).

Furthermore, technological innovation and industrial upgrading have created new jobs and employment opportunities in the GBA, particularly in the region's high-tech industries (Guangdong et al. Commission, 2021). Developing innovation and entrepreneurship ecosystems has also fostered the growth of startups and small and medium-sized enterprises (SMEs), significantly contributing to job creation (Guangdong Federation of Industry and Commerce, 2020).

The GBA's focus on technological innovation and industrial upgrading has also significantly boosted its exports and international competitiveness. The region's total value of exports reached USD 791.97 billion in 2019, accounting for 26.7% of China's total exports (General Administration of Customs of the People's Republic of China, 2020). This success can be attributed to the GBA's strong presence in high-tech and high-value-added industries, such as electronics, telecommunications, and biotechnology (Wang & Li, 2019; Huawei et al.; Ltd., 2020).

While the GBA's economic transformation has brought many benefits, it also presents challenges and risks that must be addressed. These include the potential disruption of traditional industries and job displacement, the widening of the digital divide and inequality, and environmental and sustainability concerns (Manyika et al., 2017; Van Dijk, 2020; Wang et al., 2021). However, the available evidence suggests that these challenges can be managed through strategies such as investing in education and training programs, promoting inclusive policies and initiatives, and adopting clean technologies and sustainable practices (Education Bureau, 2021; Guangdong Government, 2021; Ministry of Ecology and Environment of the People's Republic of China, 2017).

In conclusion, the Greater Bay Area has emerged as a leading economic and innovation hub, driven by its strong focus on technological innovation and industrial upgrading. The region's impressive economic performance, job creation, and international competitiveness demonstrate the significant benefits of this development strategy. While challenges and risks exist, the evidence suggests that the GBA is well-positioned to address these issues and continue its sustainable and inclusive growth trajectory.

A. Economic growth and competitiveness

1. Robust data on the positive impact of technological innovation and industrial upgrading on economic growth

a. Contribution to GDP and productivity growth

Technological innovation and industrial upgrading have been recognized as critical drivers of economic growth and productivity in the Greater Bay Area (GBA). According to a report by the China Development Institute (2020), the GBA's GDP reached 11.6 trillion yuan (approximately 1.7 trillion USD) in 2019, accounting for 12% of China's total GDP. The report also highlighted that the GBA's GDP growth rate averaged 8.5% between 2014 and 2019, surpassing the national average of 6.6% during the same period (China Development Institute, 2020). This impressive economic performance is attributed to the region's focus on technological innovation and industrial upgrading.

A study by Wang et al. (2021) found that a 1% increase in research and development (R&D) expenditure in the GBA led to a 0.78% increase in GDP growth, demonstrating the strong positive relationship between technological innovation and economic growth. Furthermore, the study revealed that the GBA's total factor productivity (TFP) growth, a measure of productivity that accounts for the efficiency of inputs, increased by an average of 2.3% annually between 2010 and 2019, with technological progress contributing 60% of this growth (Wang et al., 2021).

Table 1: GDP and TFP Growth in the Greater Bay Area (2010-2019)

Year GDP Growth (%) TFP Growth (%) Contribution of Technological Progress to TFP Growth (%)

2010 7.5 1.8 55

2015 8.2 2.1 58

2019 9.1 2.6 62

Source: Wang et al. (2021)

b. Creation of new jobs and employment opportunities

Technological innovation and industrial upgrading have created new jobs and employment opportunities in the Greater Bay Area. As industries evolve and adopt new technologies, the demand for skilled labor increases, leading to new job roles and the expansion of existing ones. A report by the Guangdong Provincial Development and Reform Commission (2021) estimated that the GBA's high-tech industries, including information technology, biotechnology, and new energy, created over 1.2 million new jobs between 2015 and 2020.

Moreover, developing innovation and entrepreneurship ecosystems in the GBA has fostered the growth of startups and small and medium-sized enterprises (SMEs), significantly contributing to job creation. According to a survey conducted by the Guangdong Federation of Industry and Commerce (2020), SMEs in the GBA accounted for 80% of total employment and 60% of GDP in 2019. The survey also found that the number of SMEs in the region grew by 15% annually between 2015 and 2019, driven by supportive government policies and increased access to funding and resources (Guangdong Federation of Industry and Commerce, 2020).

Figure 1: Employment in the Greater Bay Area's High-Tech Industries (2015-2020)

The line graph shows the growth in employment in the GBA's high-tech industries from 2015 to 2020, based on the data from the Guangdong Provincial Development and Reform Commission (2021) report.

c. Increased exports and international competitiveness

The Greater Bay Area's focus on technological innovation and industrial upgrading has significantly boosted its exports and international competitiveness. According to the China Customs Statistics Yearbook (2020), the total value of exports from the Greater Bay Area reached USD 791.97 billion in 2019, accounting for 26.7% of China's total exports (General Administration of Customs of the People's Republic of China, 2020). This remarkable export performance can be attributed to the region's emphasis on high-tech and high-value-added products, which have gained a competitive edge in the global market.

The Greater Bay Area has become a hub for advanced manufacturing and high-tech industries, such as electronics, telecommunications, and biotechnology. For instance, Shenzhen, a key city in the Greater Bay Area, is home to tech giants like Huawei, ZTE, and Tencent, which have made significant contributions to the region's exports and global competitiveness (Wang & Li, 2019). Huawei alone exported USD 105.1 billion worth of products in 2019, representing a 19.1% increase from the previous year (Huawei et al.; Ltd., 2020).

Moreover, the Greater Bay Area's industrial upgrading efforts have led to the development of innovative products and services that cater to the evolving needs of the international market. This has enhanced the region's competitiveness and attractiveness to foreign investors. According to the 2020 Global Innovation Index, the Greater Bay Area ranks among the top 20 innovative clusters worldwide, with Shenzhen-Hong Kong-Guangzhou ranking second (Cornell University, INSEAD, & WIPO, 2020).

The Belt and Road Initiative has further bolstered the Greater Bay Area's exports and international competitiveness by facilitating access to new markets and strengthening trade ties with participating countries. The initiative has led to increased investments in infrastructure, logistics, and trade facilitation, which have streamlined the flow of goods and services between the Greater Bay Area and Belt and Road countries (Liu & Dunford, 2016). This has created new opportunities for the region's high-tech and innovative products to reach a wider global audience.

In summary, the Greater Bay Area's focus on technological innovation and industrial upgrading, coupled with the support of the Belt and Road Initiative, has significantly enhanced its exports and international competitiveness. The region's ability to produce high-tech and high-value-added products and its innovative capacity has positioned it as a global leader in advanced manufacturing and technology-driven industries.

2. Case studies of economic benefits and enhanced competitiveness in the GBA

a. Success stories of innovative companies and industries

The Greater Bay Area (GBA) has witnessed remarkable success stories of innovative companies and industries that have significantly contributed to the region's economic growth and competitiveness. One such example is Tencent, a leading technology company headquartered in Shenzhen. Tencent has been at the forefront of innovation, developing cutting-edge products and services in social media, gaming, and fintech (Li, 2019). The company's success has boosted its revenue and market value and had a positive spillover effect on the entire GBA economy. Tencent's ecosystem has fostered the growth of numerous startups and small businesses, creating a vibrant and innovative environment (Chen, 2020).

Another notable success story is the rise of the drone industry in the GBA, particularly in Shenzhen. Companies like DJI have revolutionized the global drone market, capturing a significant market share and driving technological advancements (Wang, 2021). The success of the drone industry in the GBA can be attributed to the region's strong manufacturing capabilities, supportive government policies, and a culture of innovation. The drone industry has generated substantial economic benefits, created numerous high-skilled jobs, and attracted top talent to the region (Xu, 2020).

The GBA has also seen remarkable success in the biotech and life sciences industry. Companies like BGI Group, headquartered in Shenzhen, have made significant breakthroughs in genomic sequencing and research (Liu, 2019). BGI's success has put the GBA on the map as a global leader in the field of genomics and has attracted significant investment and talent to the region. The biotech industry's growth in the GBA has been supported by favorable government policies, an intense research and development ecosystem, and collaborations between academia and industry (Zhao, 2021).

b. Improved living standards and quality of life

The technological innovation and industrial upgrading in the Greater Bay Area have brought economic benefits and significantly improved the living standards and quality of life for residents in the region. The GBA's rapid economic growth, driven by innovation, has created numerous high-quality jobs and opportunities for upward social mobility (Li, 2020). The rising incomes and increased purchasing power of residents have enabled them to access better housing, education, and healthcare services (Chen, 2019).

Moreover, the GBA's focus on innovation has led to the development of smart city solutions and advanced urban infrastructure, enhancing the overall living experience for residents. For example, the widespread adoption of mobile payment systems and e-commerce platforms has made daily life more convenient and efficient (Wang, 2020). The GBA's investments in public transportation, such as expanding the high-speed rail network and developing urban metro systems, have greatly improved connectivity and reduced commuting times (Xu, 2019).

The GBA's commitment to sustainable development and environmental protection has also contributed to a better quality of life for residents. The region has implemented various green initiatives, such as promoting electric vehicles and developing eco-friendly industrial parks (Liu, 2020). These efforts have led to improved air and water quality and the Creation of more green spaces and parks, providing residents with a healthier and more livable environment (Zhao, 2020).

c. Positioning of the GBA as a regional and global innovation hub

The Greater Bay Area (GBA) has strategically positioned itself as a regional and global innovation hub, leveraging its unique advantages and the opportunities presented by the Belt and Road Initiative (BRI). The GBA's efforts to foster technological innovation and industrial upgrading have enhanced its economic competitiveness and solidified its position as a leading center for innovation on both regional and global scales.

One of the key factors contributing to the GBA's success as an innovation hub is its strong emphasis on research and development (R&D). The region has consistently invested heavily in R&D, with Shenzhen, a core city in the GBA, boasting an R&D investment intensity of 4.93% in 2020, significantly higher than the national average of 2.40% (Shenzhen Municipal People's Government, 2021). This substantial investment in R&D has attracted top talent, leading research institutions, and innovative enterprises to the GBA, creating a vibrant ecosystem that nurtures technological advancements and breakthroughs.

Establishing numerous high-tech zones, science parks, and innovation platforms has enhanced the GBA's innovation capabilities. For instance, the Shenzhen High-Tech Industrial Park, established in 1996, has become a thriving hub for high-tech industries, housing over 10,000 technology companies and generating an industrial output value of 1.1 trillion yuan in 2020 (Shenzhen et al., 2021). These specialized zones and platforms provide a conducive environment for innovation, facilitating collaboration, knowledge sharing, and technology transfer among enterprises, research institutions, and universities.

Moreover, the GBA has actively promoted international cooperation and exchanges in innovation, leveraging the opportunities presented by the BRI. The region has established partnerships with leading innovation hubs worldwide, such as Silicon Valley in the United States and Tel Aviv in Israel, to foster cross-border collaboration and knowledge exchange (Chung & Yip, 2021). These international partnerships have exposed the GBA to cutting-edge technologies and best practices and opened up new markets and opportunities for its innovative products and services.

The GBA's regional and global innovation hub positioning has yielded significant economic benefits. The region's GDP has grown at an impressive rate, with Shenzhen and Guangzhou, two major cities in the GBA, recording GDP growth rates of 7.7% and 7.1%, respectively, in 2020, outpacing the national average of 2.3% (National Bureau of Statistics of China, 2021). The GBA's innovation-driven growth has also created numerous high-quality jobs, attracting top talent across China and beyond. In 2020, the GBA was home to over 120,000 high-tech enterprises, employing over 3 million people (Guangdong Provincial Department of Science and Technology, 2021).

The GBA's success as an innovation hub has not gone unnoticed globally. 2021, the Global Innovation Index ranked Shenzhen-Hong Kong-Guangzhou as the second most innovative cluster, behind only Tokyo-Yokohama (World et al. Organization, 2021). This recognition is a testament to the GBA's remarkable achievements in technological innovation and its growing influence in shaping the global innovation landscape.

In conclusion, the Greater Bay Area has successfully positioned itself as a regional and global innovation hub, driven by its strong emphasis on R&D, specialized innovation platforms, and international cooperation. The GBA's innovation-led development has boosted its economic competitiveness and created significant growth and job creation opportunities. As the GBA continues to leverage the opportunities presented by the Belt and Road Initiative and strengthen its innovation capabilities, it is poised to play an even more significant role in driving technological advancements and shaping the future of innovation globally.

B. Challenges and risks

1. Potential challenges and risks associated with technological innovation and industrial upgrading in the GBA

a. Disruption of traditional industries and job displacement

The rapid pace of technological innovation and industrial upgrading in the Greater Bay Area (GBA) has the potential to disrupt traditional industries and lead to job displacement. As new technologies and processes are adopted, some workers may find their skills needing to be updated, leading to unemployment or underemployment. According to a study by the McKinsey Global Institute, up to 800 million jobs worldwide could be displaced by automation by 2030 (Manyika et al., 2017). In the GBA, traditional manufacturing industries, such as textiles and electronics, are particularly vulnerable to Disruption as they face increasing competition from more technologically advanced regions (Lau & Ng, 2019).

The impact of job displacement can be significant, both for individuals and society as a whole. Displaced workers may face financial hardship, reduced job security, and difficulty finding new employment (Autor, 2015). This can lead to increased inequality, social unrest, reduced consumer spending, and economic growth (Acemoglu & Restrepo, 2020). To mitigate these risks, policymakers in the GBA must prioritize investments in education and training programs to help workers adapt to changing job requirements and develop new skills (Frey & Osborne, 2017).

b. Widening digital divide and inequality

The rapid adoption of new technologies in the GBA also risks exacerbating existing inequalities and creating a digital divide between those with access to technology and those without access. According to a report by the China Internet Network Information Center (CNNIC), the internet penetration rate in the GBA was 74.6% in 2020, higher than the national average of 67.0% (CNNIC, 2021). However, this still leaves a significant portion of the population needing access to digital technologies and the opportunities they provide.

The digital divide can have far-reaching consequences, including reduced access to education, healthcare, and employment opportunities (Van Dijk, 2020). In the GBA, this divide may be particularly pronounced between urban and rural areas and between different socioeconomic groups (Zhao & Xia, 2019). To address this challenge, policymakers must prioritize investments in digital infrastructure and education programs to ensure that all residents of the GBA have access to the benefits of technological innovation (Hargittai, 2003).

Moreover, even among those with access to technology, there is a risk that the benefits of innovation will accrue disproportionately to a small group of highly skilled workers and entrepreneurs, leading to increased income inequality (Brynjolfsson & McAfee, 2014). To mitigate this risk, policymakers must ensure that the gains from innovation are shared more broadly through progressive taxation, social welfare programs, and investments in public goods (Piketty, 2014).

c. Environmental and sustainability concerns

The rapid technological innovation and industrial upgrading in the Greater Bay Area (GBA) driven by the Belt and Road Initiative (BRI) have raised concerns about these developments' environmental impact and sustainability. As industries expand and new technologies are implemented, there is a risk of increased pollution, resource depletion, and ecosystem degradation (Wang et al., 2021).

One of the primary concerns is the potential increase in greenhouse gas emissions resulting from the growth of manufacturing and transportation sectors. A study by Liu et al. (2020) found that the carbon dioxide emissions in the GBA increased by 35% between 2010 and 2018, mainly due to industrial activities and energy consumption. The BRI-driven industrial upgrading could exacerbate this trend if proper mitigation measures are not implemented.

Another challenge is the strain on natural resources, particularly water, as industries expand and populations grow in the GBA. The region is already facing water scarcity issues, with per capita water resources only one-seventh of the national average (Guangdong et al. Department, 2019). The increased demand for water from industries and urban development could further stress the already limited water resources, leading to environmental and social consequences.

Moreover, the rapid urbanization and infrastructure development associated with the BRI-driven growth in the GBA could lead to the loss of natural habitats and biodiversity. A study by Chen et al. (2019) found that urban expansion in the GBA between 2000 and 2016 resulted in the loss of 28% of the region's wetlands, which are crucial for maintaining ecological balance and providing ecosystem services.

To address these environmental and sustainability concerns, the local governments and industries in the GBA need to prioritize green development and adopt eco-friendly practices. This could include investing in renewable energy, promoting circular economy principles, implementing strict environmental regulations, and preserving natural habitats (Huang et al., 2021). The BRI could also promote sustainable development by encouraging the transfer of green technologies and best practices among participating countries.

In conclusion, while the BRI-driven technological innovation and industrial upgrading in the GBA present significant opportunities, they also pose challenges and risks related to environmental sustainability. Addressing these concerns will require a concerted effort from governments, industries, and stakeholders to balance economic growth with environmental protection and sustainable development.

2. Counterarguments and empirical evidence addressing the challenges and risks

a. Strategies for managing structural adjustments and workforce transitions

While the Belt and Road Initiative (BRI) and the Greater Bay Area (GBA) development present numerous opportunities for technological innovation and industrial upgrading, it is crucial to acknowledge and address the challenges and risks associated with these structural adjustments. One significant challenge is managing workforce transitions as industries evolve and new technologies emerge. To mitigate this risk, governments and businesses in the GBA must implement strategies that support workers through these transitions.

Investing in education and training programs is a crucial strategy for managing workforce transitions. The GBA can ensure a smooth transition and minimize job displacement by providing workers with the skills and knowledge needed to adapt to new technologies and industries. For example, the Hong Kong government has launched the "Continuing Education Fund" to support lifelong learning and help workers acquire new skills (Education Bureau, 2021). Similarly, the Guangdong government has established vocational training centers to upskill workers in emerging industries such as robotics and artificial intelligence (Guangdong Government, 2020).

Another effective strategy is fostering collaboration between industries, universities, and research institutions. By creating a robust innovation ecosystem, the GBA can facilitate knowledge transfer and accelerate the development of new technologies and industries. The "Guangdong-Hong Kong-Macao Greater Bay Area Academician Alliance" is an example of such collaboration, bringing together experts from various fields to drive scientific and technological innovation (Xinhua, 2021).

Moreover, governments in the GBA should implement policies that support small and medium-sized enterprises (SMEs) during structural adjustments. SMEs are often more vulnerable to economic changes and may require assistance adapting to new technologies and markets. The Shenzhen government, for instance, has introduced a series of measures to support SMEs, including tax reductions, financial subsidies, and streamlined administrative processes (Shenzhen Government, 2020).

b. Inclusive policies and initiatives for bridging digital divides

As the GBA continues to develop and integrate new technologies, it is essential to ensure that the benefits of innovation are distributed equitably among the population. The digital divide, which refers to the gap between those with access to digital technologies and those without, can exacerbate social and economic inequalities. To address this challenge, governments in the GBA must implement inclusive policies and initiatives that bridge the digital divide.

One approach is to invest in digital infrastructure and expand access to high-speed internet and digital devices. The Guangdong government has launched the "Guangdong Province Digital Village" project, which aims to provide high-speed internet access to rural areas and improve digital literacy among rural residents (Guangdong Government, 2021). The GBA can create a more inclusive innovation ecosystem by ensuring that all citizens have access to digital technologies.

Another important initiative is promoting digital literacy and skills development among underrepresented groups, such as older adults, low-income households, and individuals with disabilities. The Hong Kong government has introduced the "ICT Outreach Programme for the Elderly," which provides training and support to help older adults acquire digital skills and participate in the digital economy (Office of the Government Chief Information Officer, 2021). Such initiatives are crucial for ensuring that no one is left behind in the digital transformation of the GBA.

Furthermore, governments and businesses in the GBA should prioritize the development of accessible and user-friendly digital platforms and services. By designing digital solutions that cater to the needs of diverse user groups, the GBA can create a more inclusive digital environment. The Macao government, for example, has launched the "Macao Smart City" project, which aims to develop accessible and convenient digital services for all citizens (Macao Government, 2021).

c. Adoption of clean technologies and sustainable practices

Counterarguments suggest that the Belt and Road Initiative (BRI) can catalyze the Adoption of clean technologies and sustainable practices in the Greater Bay Area (GBA). The Chinese government has emphasized the importance of green development and environmental protection in the BRI, as evidenced by the "Guidance on Promoting Green Belt and Road" issued by the Ministry of Environmental Protection, Ministry of Foreign Affairs, Ministry of Commerce, and National Development and Reform Commission in 2017 (Ministry of Ecology and Environment of the People's Republic of China, 2017). This guidance document outlines the principles and strategies for integrating ecological civilization into the BRI, promoting green infrastructure, trade, and finance.

Empirical evidence supports the notion that the BRI can drive the Adoption of clean technologies in the GBA. For example, the Guangdong-Hong Kong-Macao Greater Bay Area Intercity Railway Plan, a critical infrastructure project under the BRI, prioritizes the development of electric and high-speed rail networks (HKTDC Research, 2020). The expansion of electric rail transportation can significantly reduce greenhouse gas emissions and improve air quality in the region. Moreover, the GBA has witnessed increased investments in renewable energy projects, such as the construction of offshore wind farms and solar power plants (HKTDC Research, 2019). These projects align with China's commitment to achieving carbon neutrality by 2060 and demonstrate the potential for the BRI to accelerate the transition to a low-carbon economy in the GBA.

Furthermore, the BRI has facilitated international cooperation and knowledge sharing on sustainable practices. The Belt and Road Initiative International Green Development Coalition (BRIGC), established in 2019, serves as a platform for countries along the BRI to exchange experiences and best practices in green development (United et al., 2019). The coalition has organized workshops and training programs on sustainable infrastructure, green finance, and ecosystem management, enabling the GBA to learn from and collaborate with other regions in promoting sustainable development.

Historical occurrences also provide evidence of the BRI's potential to drive the Adoption of clean technologies. In the early stages of China's economic reforms, the country faced significant environmental challenges due to rapid industrialization and urbanization. However, through targeted policies and investments in clean technologies, China has made substantial progress in reducing air and water pollution, increasing energy efficiency, and expanding renewable energy capacity (Zhu et al., 2019). The BRI can build upon these experiences and lessons learned to promote sustainable development in the GBA and beyond.

Theoretical frameworks, such as the ecological modernization theory, support the idea that economic development and environmental protection can be mutually reinforcing (Mol & Spaargaren, 2000). The BRI, by promoting investments in clean technologies and sustainable practices, can contribute to the ecological modernization of the GBA, enabling the region to achieve economic growth while minimizing environmental impacts. This aligns with the "green development" concept advocated by the Chinese government, which emphasizes the integration of economic, social, and environmental objectives (Hu, 2018).

In conclusion, while the BRI may present challenges and risks related to environmental sustainability, there is strong empirical evidence and theoretical support for its potential to drive the Adoption of clean technologies and sustainable practices in the GBA. The BRI can contribute to the region's transition to a low-carbon, environmentally friendly economy through targeted policies, investments, and international cooperation.

Summary

The Greater Bay Area (GBA) has experienced robust economic growth and enhanced competitiveness driven by technological innovation and industrial upgrading. Studies have shown that the GBA's GDP growth rate and total factor productivity (TFP) growth have outpaced the national average, with technological progress contributing significantly to this growth (China Development Institute, 2020; Wang et al., 2021). Innovation and upgrading have also created new jobs and employment opportunities, particularly in high-tech industries (Guangdong et al. Commission, 2021; Guangdong Federation of Industry and Commerce, 2020). Moreover, the GBA's focus on high-tech and high-value-added products has boosted its exports and international competitiveness (General Administration of Customs of the People's Republic of China, 2020; Wang & Li, 2019; Cornell et al., 2020).

While the GBA has reaped substantial economic benefits from technological innovation and industrial upgrading, there are also potential challenges and risks to consider. These include the disruption of traditional industries and job displacement (Manyika et al., 2017; Lau & Ng, 2019), the widening of the digital divide and inequality (CNNIC, 2021; Zhao & Xia, 2019), and environmental and sustainability concerns (Liu et al., 2020; Guangdong et al., 2019; Chen et al., 2019). To address these challenges, the GBA can implement strategies such as investing in education and training programs, fostering collaboration between industries and research institutions, and promoting inclusive policies and initiatives to bridge the digital divide (Education Bureau, 2021; Guangdong Government, 2020; Guangdong Government, 2021; Office of the Government Chief Information Officer, 2021; Macao Government, 2021). Additionally, the adoption of clean technologies and sustainable practices, facilitated by the Belt and Road Initiative, can help mitigate the environmental impacts of the region's development (Ministry of Ecology and Environment of the People's Republic of China, 2017; HKTDC Research, 2020; HKTDC Research, 2019; United et al., 2019; Zhu et al., 2019).

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