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Contents Introduction

As Internet use has expanded rapidly, understanding the relationship between digital technologies and well-being has become increasingly important. Beyond individual ICT adoption, digital transformation (DX)—defined as the broad changes driven by digital technologies across economic and social systems—has attracted growing attention. However, empirical evidence on whether regional DX improves well-being remains limited. Using longitudinal data from the 2021–2024 Survey on Satisfaction and Quality of Life in Japan by the Cabinet Office of Japan, this study examines the effects of regional DX on individuals’ life satisfaction. Regional DX is measured using the Regional DX Acceleration Lab policy and proxied by the number of municipalities adopting government-wide DX governance frameworks and comprehensive DX policy. The results indicate that while the DX Acceleration Lab policy does not generate statistically significant improvements in life satisfaction, broader municipal DX initiatives significantly enhance residents’ well-being. Subsample analyses reveal substantial heterogeneity by age group and educational attainment. Potential pathway analysis further suggests that the well-being effects of regional DX operate primarily through enhanced perceived economic security and improved institutional trust, rather than through immediate changes in employment conditions. These findings highlight that comprehensive, institution-wide DX strategies are effective in improving residents’ wellbeing.