nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2015‒07‒25
ten papers chosen by
Walter Frisch
Universität Wien

  1. Internet and taxation in the European Union: A primer By Luigi Bernardi
  2. Valuing “free” media across countries in GDP By Nakamura, Leonard I.; Soloveichik, Rachel
  3. Developing ICT Competencies of Students who are gifted in Math and Science By Jaeho Lee; Sukun Jin
  4. European Quartet of Missed Opportunities for Internet Governance By Radka MacGregor Pelikanova
  5. Investigating the perception of Iranian organizations on Internet of Things solutions and applications By Changiz Valmohammadi Imamchaei
  6. Identifying ICT-based Core Competencies for Educating Gifted Students in Science By Sukun Jin; Jeho Lee
  7. Extraction of Events from the Unstructured Text for the Tasks of Internet Sociology By Danilova, V.; Popova, S.
  8. Cluster Evolution, Regional Innovation Systems and Knowledge Bases. The Development and Transformation of the ICT Cluster in Southern Sweden By Martin, Roman; Trippl, Michaela
  9. Using Service Design to Manage Emergent Services By Tung-Hsiang Chou
  10. Eye in the Sky: Contextualizing Development with Online Privacy Concern in Western Balkan Countries By Vedran Recher; Jelena Budak; Edo Rajh

  1. By: Luigi Bernardi (Università di Pavia)
    Abstract: The purpose of this paper is to offer a primer on certain important features and issues concerning Internet and taxation in the European Union. After a general introduction concerning the origins of the matter, the paper discusses why a tax on the huge profits made by the big US digital MNEs in Europe was not substantially reflected in the tax policy of EU members, notwithstanding the large tax gap among EU countries resulting from the shift in profits by the (US digital) MNE towards lower or no taxation countries. Then the main directives on Internet and taxation introduced by the EU (and also by the OECD) since the late 1990s are discussed: the EU especially focusses on establishing the due place of taxation on electronic commerce, while the OECD (more recently together with the G20) has placed the emphasis on regulating Transfer Prices and contrasting Base Erosion and Profits’ Shifting (BEPS).
    Keywords: web tax, e-commerce, profits shifting, Europe, OECD
    JEL: H20 H24 H25 H26
  2. By: Nakamura, Leonard I. (Federal Reserve Bank of Philadelphia); Soloveichik, Rachel (U.S. Bureau of Economic Analysis)
    Abstract: “Free” consumer entertainment and information from the Internet, largely supported by advertising revenues, has had a major impact on consumer behavior. Some economists believe that measured gross domestic product (GDP) growth since 2000 is too low because it excludes online entertainment (Brynjolfsson and Oh 2012; Ito 2013). Similar large effects on consumers occurred with the arrival of free radio and television entertainment. We provide an experimental methodology that uses previously established GDP measurement procedures to value advertising-supported entertainment around the world. The experimental method raises global real GDP growth, but the increase is small. It is true that advertising-supported online entertainment has grown dramatically since 2000. Concurrently, advertising-supported print entertainment has been stagnant. The net impact is a real growth rate of 7.6% per year for advertising-supported entertainment. Furthermore, advertising-supported entertainment accounts for less than 0.5% of global GDP. As a result, our experimental methodology only raises overall real GDP growth by 0.019% per year. Across countries, the experimental methodology raises nominal inequality. In 2011, nominal GDP for nations in the Organisation for Economic Co-operation and Development (OECD) increased by 0.18% more than nominal GDP in the rest of the world. Furthermore, nominal GDP in the United States increased 0.22% more than GDP in the rest of the OECD countries. However, prices for advertising-supported entertainment are also higher in wealthier nations. The net impact is a small reduction in real inequality.
    Keywords: Advertising; Entertainment; Internet; Intangible; Measurement
    JEL: E01 L82 M37
    Date: 2015–07–02
  3. By: Jaeho Lee (Gyeongin National University of Education); Sukun Jin (Konkuk University)
    Abstract: ICT education or Software education should not be the activities only for students who have special interests or talents in information and technology areas, but general education for developing essential competencies of all students who have to survive 21st century. The necessity of ICT education is more than true in educating gifted students that will have to generate the solutions to let human beings survive this gloomy century. The purpose of our research was developing the curriculum and teaching materials that can be utilized for developing ICT Competencies of Students who are gifted in Math and Science. This research intended to restructure the current educational programs for gifted students so that students can develop their ICT competencies as they go through gifted education programs without allotting extra class hours for ICT education. To fulfill the purpose of this research, the following procedures were carried out: (1) we defined the ICT competencies that are required to students who are gifted in math and science, (2) we generated the strategies for ICT curriculum development that will be used for gifted students, (3) we selected the educational themes that ICT aspects will be applied to, (4) we developed the educational programs in selected themes based on the preset strategies, (5) we modified educational programs after pilot-testing on the fields, and (6) the completed ICT programs are distributed nation-widely.* This research was conducted as part of KOFAC(Korea Foundation for the Advancement of Science and Creativity)'s research support program.
    Keywords: ICT Education, ICT competency, Gifted Education, Math Education, Science Education
    JEL: I29
  4. By: Radka MacGregor Pelikanova (Metropolitan University Prague)
    Abstract: Who controls the Internet? Conventionally, it is assumed that the hegemony, if not monopoly, of the U.S. Government over the Internet governance is a fait accompli generated by the historic evolution, as well as the economic and political power which the USA asserted in an almost aggressive manner. This assumption is the result of a set of myths and misinformation and deserves to be corrected while presenting both American and European perspectives, in the context of the real managerial and technical setting. This black-and-white perception is to be rejected and replaced by a colorful mosaic showing that a set of misunderstandings and aborted opportunities shaped the pathway to the status quo. An active and strong impact over the Internet governance was several times close to European hands, and it is highly instructive to analyze these situations where Europeans did not manage to get involved in the top Internet management. Four decades, four sets of opportunities and four failures for many business management and other reasons are detailed. Considering the global situation, Europeans cannot afford repeating such mistakes. Taking into account the current stage of the relationship between the EU and USA, especially Transatlantic Trade and Investment Partnership, a consensus, or at least a respected tolerance, of the management of the Internet and governance over it is critical.
    Keywords: EU, DNS, Governance, ICANN, Internet.
    JEL: H73 K00 M15
  5. By: Changiz Valmohammadi Imamchaei (South Tehran Branch-Islamic Aazad University, Tehran, Iran)
    Abstract: The main purpose of this study is to explore the perception of Iranian experts and executive managers of sample organizations on the benefits and barriers of Internet of Things (IoT) solutions implementation. Based on the review of the related literature and web sites, benefits and barriers of successful implementation to IoT solutions were identified. Through a self-administered questionnaire which was collected from 67 Iranian organizations the ranking and importance of benefits and barriers of IoT solutions implementation were determined based on the perception of the experts of the surveyed organizations . Analysis of data and the obtained results revealed that “improved customer experience” and “Supply chain optimization and responsiveness” are the most important benefits that the survey organizations expect to reap as a result of IoT solutions implementation. Also,” Integration challenges" and “cannot find right suppliers” were ranked as the most challenging barriers to IoT solutions implementation.
    Keywords: Internet of Things (IoTs), exploratory study, Benefits, Barriers, Iran
    JEL: M15
  6. By: Sukun Jin (Konkuk University); Jeho Lee (Gyeongin National University of Education)
    Abstract: ICT education is an essential part of education programs for gifted students as it is for general students. In order to develop curriculum for enhancing ICT competencies of gifted students, we should be able to identify and define ICT-based core competencies themselves as the initial stage. This research was conducted as the first part for developing ICT education programs for gifted students in Science. We surveyed 232 experts, most of whom are teaching gifted students in science. As the results, we could verify that ICT education should be an important and essential aspect of gifted education, and that Lee's(2013) model can be useful frameworks for educating those ICT competencies for gifted students. Lee(2013) suggested a model named "ICT-based core competencies for the Creative and talented of the future society" which was developed for educating gifted students. This model is composed of three core competencies, which are (1) knowledge and skills competency(K&S), (2) synthesis and creativity competency(S&C), and (3) creative mind competency(CM). In this model, each core competency is made of three factors(ex, K&S of pursuing knowledge in various areas, design ability, and realization ability), and each factor is made of three elements(ex, realization ability of programing, precision, and utilizing resources) We expect that ICT education can be effectively and efficiently developed and conducted by using Lee's model.* This research was conducted as part of KOFAC(Korea Foundation for the Advancement of Science and Creativity)'s research support program.
    Keywords: ICT Competency, ICT Education, Gifted Education
    JEL: I29
  7. By: Danilova, V. (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Popova, S. (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: Preprint contains the result of the work in "Extraction of events from the unstructured text" for the tasks of Internet sociology. It describes the tools and the knowledge base, and presents the experiments to extract the events from short texts (news and LiveJournal headlines).
    Keywords: unstructured text, internet, sociology
    Date: 2015–06
  8. By: Martin, Roman (CIRCLE, Lund University); Trippl, Michaela (CIRCLE, Lund University)
    Abstract: This paper extends research on long-term cluster evolution with a context sensitive conceptual framework that highlights how configurations of regional innovation systems (RIS), their knowledge base specificities and policy actions can shape cluster development and transformation. By doing so, we redress the neglect of regional context specific factors by current accounts of cluster life cycle models. The empirical part of the paper deals with the evolution of the ICT cluster in Scania, southern Sweden. The emergence of the cluster in the early 1980s was enabled by a strong analytical and synthetic knowledge base in the region, and the subsequent growth was driven by intense collaboration between industry and academia. The changing geography of the ICT industry in the past decade brought along new challenges for the existing companies and led to a transformation of the cluster towards a new growth trajectory. Cluster transformation was facilitated by policy actions that promoted symbolic knowledge activities in the region. The strategy was to combine existing competences in mobile communication with new competences in media and design, and to develop new industrial activities around the theme of New Media, which integrates analytical, synthetic and symbolic knowledge. In the case of Scania, the endowment of the RIS of a variety of knowledge bases and their combination has led to successful cluster development in spite of challenges resulting from changing socio-economic conditions.
    Keywords: Cluster evolution; knowledge bases; regional innovation systems; innovation policy; ICT; New Media; Sweden
    JEL: B52 O33 O38
    Date: 2015–07–20
  9. By: Tung-Hsiang Chou (Dept. of Information Management, National Kaohsiung First University of Science and Technology)
    Abstract: Technology is developed in tremendous speed nowadays. Stand-alone system until now is going to Cloud Computing trend, many data can be used to save or transfer information through cloud computing. The study uses these technologies to design a multifunction e-service system for ambulance. The e-service system updated the new way from handwriting to smart device, it can ensure information to save and transfer to the hospital database. In order to improve the current ambulance system process and replace handwriting format, this study invents the e-service system for ambulance. We use service design approach to redesign service process of ambulance, and then this study uses smart device to install e-service system for ambulance. This e-service system integrates many various media (such as sound, pictures or text ) and helps hospital employee to prepare some material before the patients arrive at hospital. This study will use Taiwan’s ambulance to illustrate its process and try to improve it with service design methodology.
    Keywords: e-service, ambulance, cloud computing, service design, process
    JEL: C63 L89 M15
  10. By: Vedran Recher (The Institute of Economics, Zagreb); Jelena Budak (The Institute of Economics, Zagreb); Edo Rajh (The Institute of Economics, Zagreb)
    Abstract: The online privacy issue has received a great deal of scholarly attention in the past decade. Studies for Western developed societies have shown that privacy concern and risk awareness are higher in more developed countries; however, the relevance of online privacy concern in the context of economic development remains unexplored. In a digital society, online privacy concern could have significant impact on the real economy; therefore it is not to be underestimated. If indeed development is influenced by the penetration of new technologies, the connection between online privacy concern and development could have a major role in post-transition economies. In this paper we try to determine the level of online privacy concern in a set of post-transition, Western Balkan countries and its repercussions on the future development of these countries. Past research for the Western Balkan region has shown significant structural differences in general privacy concern and here we introduce a new approach which focuses on online privacy concern. We contextualize online privacy with the implementation of reforms which are crucial for the Western Balkan region as well as for other less developed and post-transition economies. The differences in the level of online privacy concern among post-transition Western Balkan countries are discussed in the context of their economic, technological and institutional development, and policy implications are suggested.
    Keywords: online privacy concern, development, Western Balkans
    JEL: D18 M15 O39
    Date: 2015–07

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