IDEAS home Printed from https://ideas.repec.org/a/bla/rgscpp/v13y2021i5p1615-1637.html
   My bibliography  Save this article

Impact of next‐generation access networks on the innovation efficiency of Portuguese municipalities: A spatial econometrics approach

Author

Listed:
  • Vitor Miguel Ribeiro
  • Lei Bao

Abstract

This study evaluates the impact of next‐generation‐access network coverage on the innovation efficiency of 278 Portuguese municipalities through a spatial panel data analysis focused on the period 2012–2015. We find evidence that the additional territorial coverage of next‐generation access networks has a significant, negative, indirect, and permanent effect on the innovation efficiency of Portuguese municipalities. Other results include significant time dependence effects and stronger marginal effects in the long run. Several extensions reinforce the qualitative nature of benchmark outcomes. From a regulatory point of view, this research identifies a trade‐off in the Portuguese telecommunications industry: universal (restricted) access to next‐generation access networks can reduce (improve) the innovation efficiency of Portuguese municipalities, respectively.

Suggested Citation

  • Vitor Miguel Ribeiro & Lei Bao, 2021. "Impact of next‐generation access networks on the innovation efficiency of Portuguese municipalities: A spatial econometrics approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1615-1637, October.
  • Handle: RePEc:bla:rgscpp:v:13:y:2021:i:5:p:1615-1637
    DOI: 10.1111/rsp3.12436
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/rsp3.12436
    Download Restriction: no

    File URL: https://libkey.io/10.1111/rsp3.12436?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Reinhard Wieck & Miguel Vidal, 2011. "Investment in telecommunications infrastructure, growth and employment – recent research," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 2(2), pages 135-149.
    2. Ford, George S., 2018. "Is faster better? Quantifying the relationship between broadband speed and economic growth," Telecommunications Policy, Elsevier, vol. 42(9), pages 766-777.
    3. Cave, Martin, 0. "Encouraging infrastructure competition via the ladder of investment," Telecommunications Policy, Elsevier, vol. 30(3-4), pages 223-237, April.
    4. Xiao Shi & Yongjun Li & Ali Emrouznejad & Jianhui Xie & Liang Liang, 2017. "Estimation of potential gains from bank mergers: A novel two-stage cost efficiency DEA model," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(9), pages 1045-1055, September.
    5. Hilbert, Martin, 2016. "The bad news is that the digital access divide is here to stay: Domestically installed bandwidths among 172 countries for 1986–2014," Telecommunications Policy, Elsevier, vol. 40(6), pages 567-581.
    6. Anders Akerman & Ingvil Gaarder & Magne Mogstad, 2015. "The Skill Complementarity of Broadband Internet," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(4), pages 1781-1824.
    7. Ibrahim Kholilul Rohman & Erik Bohlin, 2012. "Does broadband speed really matter as a driver of economic growth? Investigating OECD countries," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 2(4), pages 336-356.
    8. Joan Calzada & Begoña García-Mariñoso & Jordi Ribé & Rafael Rubio & David Suárez, 2018. "Fiber deployment in Spain," Journal of Regulatory Economics, Springer, vol. 53(3), pages 256-274, June.
    9. Haller, Stefanie A. & Lyons, Seán, 2015. "Broadband adoption and firm productivity: Evidence from Irish manufacturing firms," Telecommunications Policy, Elsevier, vol. 39(1), pages 1-13.
    10. Rohman, Ibrahim Kholilul & Bohlin, Erik, 2012. "Does broadband speed really matter for driving economic growth? Investigating OECD countries," 23rd European Regional ITS Conference, Vienna 2012 60385, International Telecommunications Society (ITS).
    11. Bertschek, Irene & Briglauer, Wolfgang & Hüschelrath, Kai & Kauf, Benedikt & Niebel, Thomas, 2016. "The economic impacts of telecommunications networks and broadband internet: A survey," ZEW Discussion Papers 16-056, ZEW - Leibniz Centre for European Economic Research.
    12. Ribeiro, Vitor Miguel, 2016. "Exclusion and regulatory intervention in investment sharing agreements," Telecommunications Policy, Elsevier, vol. 40(10), pages 1032-1051.
    13. Arthur Grimes & Cleo Ren & Philip Stevens, 2012. "The need for speed: impacts of internet connectivity on firm productivity," Journal of Productivity Analysis, Springer, vol. 37(2), pages 187-201, April.
    14. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    15. Wolfgang Briglauer & Klaus Gugler, 2019. "Go for Gigabit? First Evidence on Economic Benefits of High‐speed Broadband Technologies in Europe," Journal of Common Market Studies, Wiley Blackwell, vol. 57(5), pages 1071-1090, September.
    16. Diego Firmino Costa da Silva & J. Paul Elhorst & Raul da Mota Silveira Neto, 2017. "Urban and rural population growth in a spatial panel of municipalities," Regional Studies, Taylor & Francis Journals, vol. 51(6), pages 894-908, June.
    17. Grishchenko, Natalia, 2020. "The gap not only closes: Resistance and reverse shifts in the digital divide in Russia," Telecommunications Policy, Elsevier, vol. 44(8).
    18. H�lia Costa & Linda Gon�alves Veiga & Miguel Portela, 2015. "Interactions in Local Governments' Spending Decisions: Evidence from Portugal," Regional Studies, Taylor & Francis Journals, vol. 49(9), pages 1441-1456, September.
    19. Mattia Nardotto & Tommaso Valletti & Frank Verboven, 2015. "Unbundling The Incumbent: Evidence From Uk Broadband," Journal of the European Economic Association, European Economic Association, vol. 13(2), pages 330-362, April.
    20. Xiao Shi & Yongjun Li & Ali Emrouznejad & Jianhui Xie & Liang Liang, 2017. "Erratum to: Estimation of potential gains from bank mergers: A novel two-stage cost efficiency DEA model," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(8), pages 983-983, August.
    21. Silva, Simone & Badasyan, Narine & Busby, Michael, 2018. "Diversity and digital divide: Using the National Broadband Map to identify the non-adopters of broadband," Telecommunications Policy, Elsevier, vol. 42(5), pages 361-373.
    22. Briglauer, Wolfgang & Dürr, Niklas S. & Gugler, Klaus, 2019. "A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties," ZEW Discussion Papers 19-026, ZEW - Leibniz Centre for European Economic Research.
    23. Bell, Andrew & Jones, Kelvyn, 2015. "Explaining Fixed Effects: Random Effects Modeling of Time-Series Cross-Sectional and Panel Data," Political Science Research and Methods, Cambridge University Press, vol. 3(1), pages 133-153, January.
    24. Michael Fritsch & Viktor Slavtchev, 2011. "Determinants of the Efficiency of Regional Innovation Systems," Regional Studies, Taylor & Francis Journals, vol. 45(7), pages 905-918.
    25. Fourie, Helanya & de Bijl, Paul W.J., 2018. "Race to the top: Does competition in the DSL market matter for fibre penetration?," Telecommunications Policy, Elsevier, vol. 42(9), pages 778-793.
    26. Briglauer, Wolfgang & Gugler, Klaus, 2013. "The deployment and penetration of high-speed fiber networks and services: Why are EU member states lagging behind?," Telecommunications Policy, Elsevier, vol. 37(10), pages 819-835.
    27. Aurora A. C. Teixeira & Sofia F. Correia, 2020. "Determinants of the Economic Performance of Portuguese Family Firms: Is Innovation Relevant?," Studies on Entrepreneurship, Structural Change and Industrial Dynamics, in: José Manuel Saiz-Álvarez & João Leitão & Jesús Manuel Palma-Ruiz (ed.), Entrepreneurship and Family Business Vitality, pages 297-326, Springer.
    28. Lung‐fei Lee & Jihai Yu, 2016. "Identification of Spatial Durbin Panel Models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(1), pages 133-162, January.
    29. Rosston Gregory L. & Savage Scott J & Waldman Donald M, 2010. "Household Demand for Broadband Internet in 2010," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-45, September.
    30. Gregory Rosston & Scott Savage & Donald Waldman, 2010. "Household Demand for Broadband Internet Service," Discussion Papers 09-008, Stanford Institute for Economic Policy Research, revised Feb 2010.
    31. Theodore Tsekeris & Sotiris Papaioannou, 2018. "Regional determinants of technical efficiency: evidence from the Greek economy," Regional Studies, Taylor & Francis Journals, vol. 52(10), pages 1398-1409, October.
    32. Brian Whitacre & Roberto Gallardo & Sharon Strover, 2014. "Does rural broadband impact jobs and income? Evidence from spatial and first-differenced regressions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 649-670, November.
    33. Domenech, Josep & Escamilla, Rafael & Roig-Tierno, Norat, 2016. "Explaining knowledge-intensive activities from a regional perspective," Journal of Business Research, Elsevier, vol. 69(4), pages 1301-1306.
    34. Szeles, Monica Răileanu, 2018. "New insights from a multilevel approach to the regional digital divide in the European Union," Telecommunications Policy, Elsevier, vol. 42(6), pages 452-463.
    35. Fudenberg, Drew & Gilbert, Richard & Stiglitz, Joseph & Tirole, Jean, 1983. "Preemption, leapfrogging and competition in patent races," European Economic Review, Elsevier, vol. 22(1), pages 3-31, June.
    36. Eckhardt Bode, 2004. "The spatial pattern of localized R&D spillovers: an empirical investigation for Germany," Journal of Economic Geography, Oxford University Press, vol. 4(1), pages 43-64, January.
    37. Mercedes Gumbau Albert, 2017. "Entrepreneurship, innovation and regional performance: application for the Spanish regions," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(3-4), pages 271-291, March.
    38. Lutz, Sebastian Uljas, 2019. "The European digital single market strategy: Local indicators of spatial association 2011–2016," Telecommunications Policy, Elsevier, vol. 43(5), pages 393-410.
    39. Hasbi, Maude, 2017. "Impact of Very High-Speed Broadband on Local Economic Growth: Empirical Evidence," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168484, International Telecommunications Society (ITS).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abrardi, Laura & Cambini, Carlo, 2019. "Ultra-fast broadband investment and adoption: A survey," Telecommunications Policy, Elsevier, vol. 43(3), pages 183-198.
    2. Lobo, Bento J. & Alam, Md Rafayet & Whitacre, Brian E., 2020. "Broadband speed and unemployment rates: Data and measurement issues," Telecommunications Policy, Elsevier, vol. 44(1).
    3. Briglauer, Wolfgang & Dürr, Niklas S. & Gugler, Klaus, 2019. "A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties," ZEW Discussion Papers 19-026, ZEW - Leibniz Centre for European Economic Research.
    4. Stockinger, Bastian, 2017. "The effect of broadband internet on establishments' employment growth: evidence from Germany," IAB-Discussion Paper 201719, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Briglauer, Wolfgang & Stocker, Volker, 2020. "Bedeutung digitaler Infrastrukturen und Dienste und Maßnahmen zur Förderung der Resilienz in Krisenzeiten," Policy Notes 42, EcoAustria – Institute for Economic Research.
    6. Hasbi, Maude & Bohlin, Erik, 2021. "Impact of Broadband Quality on Median Income and Unemployment: Evidence from Sweden," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238026, International Telecommunications Society (ITS).
    7. Briglauer, Wolfgang & Dürr, Niklas & Gugler, Klaus, 2021. "A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties," International Journal of Industrial Organization, Elsevier, vol. 74(C).
    8. Ferdinand Pavel & Yann Girard & Arno Hantzsche & Anselm Mattes & Julius Pahlke & Katherina Peter, 2014. "Wachstumsfaktor Telekommunikation: zum Beitrag der Telekommunikationsbranche zur wirtschaftlichen Entwicklung in Deutschland; Endbericht," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 78, number pbk78, January.
    9. Prieger, James E., 2013. "The broadband digital divide and the economic benefits of mobile broadband for rural areas," Telecommunications Policy, Elsevier, vol. 37(6), pages 483-502.
    10. Bertschek, Irene & Briglauer, Wolfgang & Hüschelrath, Kai & Krämer, Jan & Frübing, Stefan & Kesler, Reinhold & Saam, Marianne, 2016. "Metastudie zum Fachdialog Ordnungsrahmen für die Digitale Wirtschaft: Im Auftrag des Bundesministeriums für Wirtschaft und Energie (BMWi)," ZEW Expertises, ZEW - Leibniz Centre for European Economic Research, number 147040, September.
    11. Calvin Jones & Dylan Henderson, 2019. "Broadband and uneven spatial development: The case of Cardiff City-Region," Local Economy, London South Bank University, vol. 34(3), pages 228-247, May.
    12. DeStefano, Timothy & Kneller, Richard & Timmis, Jonathan, 2018. "Broadband infrastructure, ICT use and firm performance: Evidence for UK firms," Journal of Economic Behavior & Organization, Elsevier, vol. 155(C), pages 110-139.
    13. Briglauer, Wolfgang & Dürr, Niklas & Gugler, Klaus, 2019. "A Retrospective Study on the Regional Benefits and Spillover Effects of High-Speed Broadband Networks: Evidence from German Counties," 30th European Regional ITS Conference, Helsinki 2019 205171, International Telecommunications Society (ITS).
    14. Teklemariam, Mekuria Haile & Kwon, Youngsun, 2020. "Differentiating mobile broadband policies across diffusion stages: A panel data analysis," Telecommunications Policy, Elsevier, vol. 44(8).
    15. Hasbi, Maude, 2017. "Impact of Very High-Speed Broadband on Local Economic Growth: Empirical Evidence," 14th ITS Asia-Pacific Regional Conference, Kyoto 2017: Mapping ICT into Transformation for the Next Information Society 168484, International Telecommunications Society (ITS).
    16. Briglauer, Wolfgang & Stocker, Volker & Whalley, Jason, 2020. "Public policy targets in EU broadband markets: The role of technological neutrality," Telecommunications Policy, Elsevier, vol. 44(5).
    17. Gabriel Ahlfeldt & Pantelis Koutroumpis & Tommaso Valletti, 2017. "Speed 2.0: Evaluating Access to Universal Digital Highways," Journal of the European Economic Association, European Economic Association, vol. 15(3), pages 586-625.
    18. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    19. Huang, Jiashun & Li, Weiping & Guo, Lijia & Hall, Jim W., 2022. "Information and communications technology infrastructure and firm growth: An empirical study of China's cities," Telecommunications Policy, Elsevier, vol. 46(3).
    20. Steven Deller & Brian Whitacre & Tessa Conroy, 2022. "Rural broadband speeds and business startup rates," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(3), pages 999-1025, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rgscpp:v:13:y:2021:i:5:p:1615-1637. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1757-7802 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.