nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2009‒08‒30
three papers chosen by
Walter Frisch
University Vienna

  1. ICT as an Enabler for Innovation Adoption By Verkerk, M.; Pijl, G. van der; Asperen, E. van
  2. What Determines the Attractiveness of EU Regions to the Location of Multinational Firms in the ICT Sector? By Siedschlag, Iulia; Zhang, Xiaoheng; Smith, Donal
  3. Web use and offshoring By Aoife Hanley; Ingrid Ott

  1. By: Verkerk, M.; Pijl, G. van der; Asperen, E. van (Erasmus Econometric Institute)
    Abstract: In this paper we investigate how two online services (a portal and a digital library) may influence the adoption of an innovation. It is known from prior surveys that the installation services branch of the Dutch building industry has a relatively slow adoption rate for innovations. We examine if these two online services can influence the attitude towards the adoption of innovations. From the academic literature we have derived a list of factors that influence the attitude towards adoption by individuals. We limited this project to a number of factors that are commonly referred to as technological factors. Using an online digital library and a custom-built portal, we conducted a field experiment with a post-test only control group design for one particular innovative product (a gas-analysis device); the test was performed using a survey. Our main finding is that the portal has a significant and positive effect towards the adoption of the innovation by an individual. We did not find a significant impact for the use of the digital library. On the basis of this experiment, we propose that online services that offer a high degree of interaction amongst their users are more likely to induce an increase in the willingness of an individual to adopt an innovation.
    Keywords: innovation;adoption;portal;digital library;field experiment.
    Date: 2009–07–30
  2. By: Siedschlag, Iulia (ESRI); Zhang, Xiaoheng (ESRI); Smith, Donal (ESRI)
    Abstract: We examine the attractiveness of European Union regions for location of multinationals in the Information and Communication Technologies (ICT) sector. Using data on 8,543 foreign subsidiaries established in 229 regions of the European Union over the period 1998-2008 we find that on average, the location probability increases with regional demand, agglomeration economies, technological development, flexibility of labour markets, and information technology infrastructure. The determinants of the location choice of ICT multinationals are different for regions in Western Europe and Central and Eastern Europe. While in Western Europe, regions with higher GDP per capita are preferred for both ICT multinationals in manufacturing and service sectors, in Central and Eastern Europe, regions with lower GDP per capita attract the bulk of ICT multinationals in the service sector. Unemployment rates appear negatively correlated with the probability of location in the whole European Union and Western Europe, while they increase attractiveness for regions in Central and Eastern Europe. Some determinants are also found to have heterogeneous effects on multinationals from different countries. In particular, US multinationals are not sensitive to labour costs while EU multinationals respond to this factor negatively.
    Keywords: Foreign direct investment; Information and Communication Technologies; Location choice; Conditional logit; Nested logit; European Union.
    Date: 2009
  3. By: Aoife Hanley; Ingrid Ott
    Abstract: Formulating a model which summarises transportation costs, uncertainty and price, we describe how a switch to ICT procurement can impact more readily procured services rather than materials. Uncertainty represents a catch-all factor describing the dovetailing of operations between two neither culturally nor geographically proximate, independent firms. Using a 3-year panel, we find that ICT ‘switchers’ report increases in services offshored by between 1.9 and 1.6 percent. Uniquely, we also report a 2-3 percent reduction in the level of materials offshoring following a switch to internet procurement
    Keywords: Offshoring, heterogeneous inputs, uncertainty, price, transportation costs
    Date: 2009–07

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