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Determinants of digital technology use by companies

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  • Timothy DeStefano
  • Koen De Backer
  • Laurent Moussiegt

Abstract

Advances in digital technologies are transforming the way firms function, how they are structured and the manner in which they compete. This paper contributes to our understanding of digital technology usage by assessing changing patterns in the use of hardware and software and identifying the extent to which various plant characteristics and policy environments correlate with ICT investment. The results suggest notable changes in the use of a number of digital technologies across countries between 2000 and 2012. A range of establishment-level determinants appear to be important for hardware and software investment including size, being in a knowledge intensive sector and if the establishment is the headquarters. The effects of policy measures however are markedly different across various ICTs. Heterogeneity in the effects of policy indicators on a number of ICTs suggest a reconsideration is needed regarding the relevance of traditional aggregate policy measures for digital technology use.

Suggested Citation

  • Timothy DeStefano & Koen De Backer & Laurent Moussiegt, 2017. "Determinants of digital technology use by companies," OECD Science, Technology and Industry Policy Papers 40, OECD Publishing.
    • Handle: RePEc:oec:stiaac:40-en
    DOI: 10.1787/a9b53784-en
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    Cited by:

    1. Cho, Jaehan & DeStefano, Timothy & Kim, Hanhin & Kim, Inchul & Paik, Jin Hyun, 2023. "What's driving the diffusion of next-generation digital technologies?," Technovation, Elsevier, vol. 119(C).
    2. Albert Banal-Estanol & Jo Seldeslachts & Xavier Vives, 2022. "Ownership Diversification and Product Market Pricing Incentives," Discussion Papers of DIW Berlin 2023, DIW Berlin, German Institute for Economic Research.
    3. Tomaso Duso & Alexander Schiersch, 2022. "Let's Switch to the Cloud: Cloud Adaption and Its Effect on IT Investment and Productivity," Discussion Papers of DIW Berlin 2017, DIW Berlin, German Institute for Economic Research.
    4. Wali Aya Rumbia & Abd Azis Muthalib & Bakhtiar Abbas & Pasrun Adam & Asrul Jabani & Yuwanda Purnamasari Pasrun & Dzulfikri Azis Muthalib, 2022. "The Asymmetry Effect of Oil Consumption, Unemployment and Broadband Technology on Economic Growth in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 276-281, March.
    5. Schiersch, Alexander & Duso, Tomaso, 2023. "Let's Switch to the Cloud: Cloud Adoption and its Effect on IT Investment and Productivity," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277571, Verein für Socialpolitik / German Economic Association.
    6. Klein, Daniel & Ludwig, Christopher A. & Nicolay, Katharina, 2020. "Internal digitalization and tax-efficient decision making," ZEW Discussion Papers 20-051, ZEW - Leibniz Centre for European Economic Research.
    7. Nicoletti, Giuseppe & von Rueden, Christina & Andrews, Dan, 2020. "Digital technology diffusion: A matter of capabilities, incentives or both?," European Economic Review, Elsevier, vol. 128(C).

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