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Introduction: Regional economies are significantly shaped by the new developments in technology, digital transformations, as well as by the demographic processes (the ageing population and international migration), all of these being amplified by the Covid-19 pandemics and requiring tailored strategies to bridge regional welfare gaps and enhance sustainable economic development.

Aim: This research provides a review of the interplay between the regional economic welfare and digitalisation, with a keen focus on digital transformations, education, digital skills and risk management strategies in filling development gaps and enhancing regional economic growth in a sustainable development framework, with a keen focus on Romania. In this approach, the study undertakes several essential research questions and designs an advanced theoretical and empirical research to inforce the knowledge in this scientific field.

Method: The methodological framework consists of robust regression models and spatial analysis with two types of spatial models, namely spatial lag-autoregressive and spatial error. National data compiled for Romania during the 2010–2019 lapse of time were exploited.

Findings: Main results encompass that digitalisation coordinates, education and digital skills are essential for enhancing the economic development and labour market performance of various regions in Romania, with beneficial spill-overs on sustainable economic welfare and poverty reduction. These advances bring to the fore important shifts in both demand and supply sides across regional economies that affect the equilibrium and overall performance, while public discourse, regulatory authorities, policy-makers and business representatives render global the keen need to strengthen the understandings in this scientific field.

Due to the global labor market challenges, international companies react and adjust fast to these circumstances by implementing digital solutions into all business processes. Organizational ambidexterity is seen as the response of digital transformation and it can be divided into structural, contextual, and sequential dimensions. In this context, organizations representing the smart industry will need employees with specific competencies which let them meet technological challenges.

This chapter aims to clarify the state of opinion on expectations towards, and preparedness for, the impact of Industry 4.0 on human resources management and the implementation of various types of ambidexterity in these companies. We have conducted interviews with key HR informants from manufacturing companies operating in Germany and Poland. We have found that Industry 4.0 has a significant impact on HR practices. In both international companies, various digital solutions in employee recruitment, development, and performance, have been implemented. There have also been mature examples in both companies of structural, contextual, and sequential ambidexterity.