nep-tid New Economics Papers
on Technology and Industrial Dynamics
Issue of 2012‒12‒15
two papers chosen by
Rui Baptista
Technical University of Lisbon

  1. New-to-Market Product Innovation and Firm Performance: Evidence from a firm-level innovation survey in Japan By ISOGAWA Daiya; NISHIKAWA Kohei; OHASHI Hiroshi
  2. Broadband Internet and Firm Entry: Evidence from Rural Iowa By Kim, Younjun; Orazem, Peter

  1. By: ISOGAWA Daiya; NISHIKAWA Kohei; OHASHI Hiroshi
    Abstract: This paper evaluates the economic impact of new-to-market product innovation using firm-level data obtained from the Japanese National Innovation Survey. It accounts for possible technological spillovers in innovation activities and examines the extent to which new-to-market product innovation contributes to firm performance. The paper offers several new insights on product innovation.
    Date: 2012–12
  2. By: Kim, Younjun; Orazem, Peter
    Abstract: The availability of broadband Internet service should have increased firm productivity and lowered firm entry costs.  However, validating the broadband effect is complicated by the rapid deployment of broadband Internet service across metropolitan areas, removing meaningful variation in broadband availability.  Deployment in rural markets was much more uneven, suggesting that the presence or absence of broadband service may have altered the site selection of firms targeting rural markets.  We investigate the effect of broadband availability on firm location decision in rural Iowa.  We establish a counterfactual baseline firm entry rate for each zip code area in rural counties by showing how the presence of broadband service in a ZIP code in 2001 affected firm entry in 1990-1992 before Broadband was available.  We then measure how the actual presence of broadband service in the same ZIP code affected firm entry in 2000-2002.  We show that the difference in estimated probability of entry between the counterfactual baseline and the actual response ten years later is the Difference-in-Differences estimate of the effect of broadband deployment on firm start-ups.  We find that broadband availability in a rural ZIP code has a positive and significant effect on firm entry in the ZIP code but only in rural markets adjacent to a metropolitan area or with a larger urban population.  Broadband access does not affect new firm entry in more remote rural markets
    Keywords: Internet; Rural; urban; : broadband; firm entry; metropolitan area
    JEL: M13 O33 R11
    Date: 2012–12–03

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