nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2016‒09‒04
four papers chosen by
Walter Frisch
Universität Wien

  1. The economic impacts of telecommunications networks and broadband internet: A survey By Bertschek, Irene; Briglauer, Wolfgang; Hüschelrath, Kai; Kauf, Benedikt; Niebel, Thomas
  2. Factors Influencing the Diffusion of Information and Communications Technology: Are Developing Countries Different? By Tara Mitchell
  3. The lack of boundaries resources hinders the growth of industrial internet By Castren, Klaus; Kortelainen, Aleksi; Seppälä, Timo
  4. Direct-to-Consumer Advertising and Online Search By Matthew Chesnes; Ginger Zhe Jin

  1. By: Bertschek, Irene; Briglauer, Wolfgang; Hüschelrath, Kai; Kauf, Benedikt; Niebel, Thomas
    Abstract: We provide a structured overview of the quantitative literature on the economic impacts of telecommunications networks and broadband internet. Differentiating between wireline and wireless technologies as well as broadband availability and broadband adoption, respectively, we review studies investigating the impacts on economic growth, employment and regional development as well as productivity and firm performance. Eventually, the survey does not only allow the identification of main research gaps but also provides useful information for policy makers on the significance and importance of communication networks for social welfare.
    Keywords: Telecommunications,Broadband,Economic Growth,Employment,Regional Development,Productivity
    JEL: D24 J23 J24 L96 O33 O47
    Date: 2016
  2. By: Tara Mitchell (Department of Economics, Trinity College Dublin)
    Abstract: This paper uses a logistic model of technology diffusion to investigate the relationship between rates of mobile phone, internet and broadband use and a number of economic, geographic and institutional variables, in a sample of 144 countries from 1990 to 2013. It pays particular attention to the differences in the process of diffusion between high- and low-income countries. The aim of the paper is to identify the main characteristics of countries that have had success in adopting these new technologies in order to gain some insight into the barriers which may be faced by those countries that have been less successful. The results suggest that there are important differences between high- and low-income countries in terms of the factors that influence the diffusion of digital technologies.
    Keywords: Digital divide, technology diusion, mobile phones, internet
    JEL: O1 O3 O33
    Date: 2016–09
  3. By: Castren, Klaus; Kortelainen, Aleksi; Seppälä, Timo
    Abstract: Abstract We analyze 51 medium-sized manufacturing industry companies identified by Ali-Yrkkö and Rouvinen in their earlier research in 2015. Currently, out of these 51 companies with a staff of 250–499 employees in 2013, none are using digital platforms for business network management. It is typical for digital platforms that different actors can create, provide and maintain complementary products and services to the various distribution channels and markets, within the framework of mutually agreed business and contract rules, technical bourdary resources and a predefined user experience. Only seven companies (14%) offer digitally featured products and services. Digital product and service features are charted by using 26 different Finnish and English search terms, such as ’internet of things’, ’sensor’, ’cloud service’ and ’preventive maintenance’. Finally we consider four strategic questions for open boundary resources.
    Keywords: Digital platforms, boundary resources, digital offering, Kemppi
    JEL: L6 L8 L86 L89
    Date: 2016–08–26
  4. By: Matthew Chesnes; Ginger Zhe Jin
    Abstract: Beginning in 1997, the Food and Drug Administration (FDA) allowed television advertisements to make major statements about a prescription drug, while referring to detailed drug information on the internet (FDA 1997; 2015). The hope was that consumers would seek additional information online to fully understand the risks and benefits of taking the medication. To better understand the effects of the policy, we analyze direct-to-consumer advertising (DTCA) and search engine click-through data on a set of drugs over a three-year period. Regression analysis shows that advertising on a prescription drug serves to increase the frequency of online search and subsequent clicks for that drug, as well as search for other drugs in the same class. We find the relationship between DTCA and search is stronger for younger drugs, for those drugs that treat acute conditions, those drugs that are less likely to be covered by insurance, and those whose searcher population tends to be older. These findings suggest that DTCA motivates consumers to search online for drug information, but the magnitude of the effect is heterogeneous and potentially associated with clicks on websites that are more promotional in nature.
    JEL: D83 I12 K32 L81
    Date: 2016–08

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