nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2024‒02‒12
seven papers chosen by
Marek Giebel, Universität Dortmund

  1. The Inverted U-Shaped Relationship between broadband penetration and International R&D Collaboration: Evidence from 19 OECD Countries By Samira Bakkali; Michele Cincera; Nicolas van Zeebroeck
  2. Adoption of ICT and Environmental Management Practices: Empirical Evidence from European Firms By Julien Gosse; Chris CM Forman; Nicolas van Zeebroeck
  3. Assessing the Impact of New Technologies on Wages and Labour Income Shares By Antea Barišić; Mahdi Ghodsi; Robert Stehrer
  4. Assessing the Impact of Digitalization, Tax Revenues, and Energy Resource Capacity on Environmental Quality: Fresh Evidence from CS-ARDL in the EKC Framework By Adel Ben Youssef; Mounir Dahmani
  5. The Behavioral, Economic, and Political Impact of the Internet and Social Media: Empirical Challenges and Approaches By Sabatini, Fabio
  6. Digitalization and Resilience: Data Assets and Firm Productivity Growth During the COVID-19 Pandemic By Koski, Heli; Fornaro, Paolo
  7. Digital transformation in firms: determinants of technology adoption and implications for performance By Silvia Massini; Mabel Sanchez Barrioluengo; Xiaoxiao Yu; Reza Salehnejad

  1. By: Samira Bakkali; Michele Cincera; Nicolas van Zeebroeck
    Abstract: This paper investigates the relationship between ICT and international R&D collaborations among 19 OECD countries from 2000 to 2015. More specifically, it looks at the impact of broadband penetration on the number of international co-inventions measured through patents. Poisson and Negative binomial regression models are employed for estimation. The results reveal a non-linear association between broadband access and international R&D collaborations, characterized by an inverted U-shaped curve. Additionally, the insights show that broadband penetration increased the concentration of existing and new collaboration ties. Subsequent analysis is undertaken, splitting the overall country-pairs sample into seven technology areas using the OST7 classification. Consistent with the overall findings, Electronics, Instruments, Chemicals, and Pharma exhibit the same inverted U-shaped relationship. However, the relationship is non-significant for Industrial and Mechanical Processes, while Civil engineering displays a positive linear association. These results also underline how crucial it is to consider particular technology areas when assessing how technology adoption affects international R&D collaboration.
    Keywords: Broadband penetration, International R&D Collaboration, Negative Binomial
    Date: 2024–01
  2. By: Julien Gosse; Chris CM Forman; Nicolas van Zeebroeck
    Abstract: Today’s world is profoundly transformed by two major revolutions. The first one is related to the sustainability transition, while the other relates to the digital transformation of our economies and societies. Recently, regions such as Europe have put the integration between these two transformations high on their agenda. A term was coined for it: the twin transition. In a nutshell, the twin transition aims at leveraging the potential of technologies such as Cloud technologies, Internet of Things (IoT) and Artificial Intelligence (AI) to tackle the sustainability transition.
    Keywords: Digital Transformation, Environmental Management, Sustainability Practices, Green ICT, ICT for Green
    Date: 2023–11
  3. By: Antea Barišić; Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: This paper advances the literature on the impacts of new technologies on labour markets, focusing on wage and labour income shares. Using a dataset from 32 countries and 38 industries, we analyse the effects of new technologies – proxied by patents, information and communication technology (ICT) capital usage, and robot intensity – on average wages and labour income shares over time. Our results indicate a positive correlation between patents and wage levels along with a minor negative impact on labour income shares, suggesting that technology rents are not fully passed on to labour. Robot intensity is positively associated with labour income shares, while ICT capital has an insignificant effect. These effects persist over time and are reinforced by global value chain (GVC) linkages. Our conclusions align with recent research indicating that new technologies have a generally limited impact on wages and labour income shares.
    Keywords: Robot adoption, ICT investment, new technologies, GVC, wages, labour income shares
    JEL: C13 C23 F14 F16 O33
    Date: 2024–01
  4. By: Adel Ben Youssef (UCA - Université Côte d'Azur); Mounir Dahmani (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur, UGAF - Université de Gafsa - Sidi Ahmed Zarroug)
    Abstract: This study examines the dynamic relationships between digitalization, environmental tax revenues, and energy resource capacity within the framework of the Environmental Kuznets Curve (EKC), focusing on their combined impact on environmental quality. It employs a cross-sectional augmented autoregressive distributed lag (CS-ARDL) approach, an advanced technique for complex panel data that is specifically designed to address issues of cross-sectional dependence and slope heterogeneity inherent in panel data analysis. The research covers 88 countries, including both low- and middle-income countries (LMICs) and high-income countries (HICs), to understand how digitalization, as a driving force of the Fourth Industrial Revolution, interacts with environmental taxation and energy resource management to affect greenhouse gas emissions. The results reveal distinct effects of environmental taxes and energy capacity on environmental quality, with marked differences between LMICs and HICs. In HICs, technological progress, especially in information and communication technology (ICT), is found to contribute significantly to environmental quality. For LMICs, the effects are less evident, and the findings suggest the need for tailored strategies in environmental policy and energy management. By providing empirical evidence on the differential impacts of digitalization and energy policies in different economic contexts, this research enriches the environmental economics discourse. It highlights the need for policy frameworks tailored to specific contexts that effectively balance economic growth with sustainable development goals, thereby providing insightful implications for achieving the Sustainable Development Goals (SDGs).
    Keywords: ICT, environmental taxes, energy resource capacity, environmental sustainability, developing countries, developed countries, CS-ARDL, DCCEMG, AMG
    Date: 2024–01–05
  5. By: Sabatini, Fabio (Sapienza University of Rome)
    Abstract: This paper presents a review of empirical methods used to assess the behavioral, economic, and political outcomes of Internet and social media usage. Instead of merely surveying the various impacts of the Internet, we examine the methods adopted to identify these impacts. We describe two main approaches for establishing causal effects, each with strengths and limitations. The first approach involves searching for exogenous sources of variation in the access to fast Internet or specific content. The second approach takes the form of field or laboratory experiments. In this paper, we focus on the first approach, delving into the methodological threats, empirical design, and main findings of the most prominent studies that exploit natural or quasi-experiments for identifying the causal impact of high-speed Internet or specific social media. This undertaking allows us to highlight the key empirical challenges in the field of Internet and social media economics while summarizing the causal relationships that the literature has uncovered so far.
    Keywords: internet, social media, artificial intelligence, broadband infrastructure, politics, social capital
    JEL: D71 D72 D74 D83 L82 L86 L88 L96 L98 Z13
    Date: 2023–12
  6. By: Koski, Heli; Fornaro, Paolo
    Abstract: Abstract This study investigates the impact of firm-level investments in data assets on productivity growth during the COVID-19 pandemic, utilizing matched employer-employee data of 13, 609 Finnish firms for 2015–2020. Our estimation results indicate that firms with greater pre-pandemic investments in software and database assets and ICT experienced significantly higher labor productivity growth in the first year of the pandemic. Notably, these positive effects are predominantly observed in the service sector, while manufacturing companies did not exhibit statistically significant impacts. Furthermore, our analysis highlights that large service companies with greater investments in data assets demonstrated higher labor productivity growth than their counterparts. We also identify a noteworthy complementarity between a firm’s investments in ICT and databases and employees’ skills, as measured by education level. Interestingly, our empirical findings underscore that firms investing more in data, databases and ICT were statistically significantly more likely to belong to the productivity frontier of their industry.
    Keywords: Data assets, Digitalization, Productivity, Growth, Resilience, Pandemics
    JEL: D22 L25 O33
    Date: 2024–01–16
  7. By: Silvia Massini (Manchester Institute of Innovation Research, The University of Manchester); Mabel Sanchez Barrioluengo (Manchester Institute of Innovation Research, The University of Manchester); Xiaoxiao Yu (Manchester Institute of Innovation Research, The University of Manchester); Reza Salehnejad (Manchester Institute of Innovation Research, The University of Manchester)
    Abstract: Advanced digital technologies (DTs) such as AI, Big Data, Cloud Computing, 3D printing, IoT, and Robotics are known for their potential to be pervasive and generate disruptive change. Despite this, there is limited evidence regarding the factors that motivate or hinder technology adoption. This study, based on an original survey of firms in Greater Manchester, aims to shed light on the determinants of DT adoption, including underlying motivations, potential barriers, and skills deficits. Additionally, it explores the influence of digitalisation and skills on firms‘ performance. Our results suggest that while different DTs are at varying stages of technology diffusion, they are characterised by complementarity and are often jointly adopted. Furthermore, the adoption of DTs in SMEs and younger firms, coupled with the presence of appropriate (digital and non-digital) skills, constitutes a pivotal synergy that significantly influences firms' productivity levels.
    Keywords: Digital transformation, Adoption, Skills, Motivations, Barriers, Productivity, Firms
    Date: 2024–01

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