IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/68926.html
   My bibliography  Save this paper

Diffussion of ICT-products and "five Russias"

Author

Listed:
  • Baburin, Vyacheslav
  • Zemtsov, Stepan

Abstract

The authors explored the potential of new information and communications technologies (ICT) absorption in Russian regions primarily on an example of mobile communication. ICT-sector is rapidly growing, especially in consumer market, and it is an ideal object for diffusion research because it is fast spreading, and it can be obtained by almost all parts of a social system. The purpose was to classify regions by the rate of innovativeness. The saturation rate for mobile phone usage (active SIM cards per 100 people) was used as a proper indicator on the first stage of the research. All regions were classified according to rates of diffusion from 1999 to 2011, and five clusters were identified, corresponding to diffusion stages, identified by E. Rogers: innovators, early adopters, early majority, late majority and laggards. There were four stages of spatial diffusion, according to the theory of T. Hagerstrand. Each stage were determined by several factors. The most influential factors were income, price of services and competition. Mobile phone usage in most Russian regions reached 100% saturation (one active SIM card per capita) in 2006-2007. Later development was determined not by demand for phone connection, but by the demand for internet connection, which was easily provided by mobile systems in smartphones, tablets, and other devices. To assess the innovativeness of regional communities, or their ability to absorb new products, cluster analysis, based on the threshold values of Bass model parameters, was performed. The results were similar to those obtained earlier, but the early appearance of innovators in several regions did not increase the total number of users. Both previous methods of classification could be biased regarding special features of mobile communication diffusion. That is why, on the last stage an integral index of innovativeness was introduced, including rate of diffusion for several ICT-products on the early period of their introduction. The analysis proved that hierarchical model of diffusion from the main centres to secondary prevailed in Russia. Factor of geographical location also played an important role. The research showed the significant difference in the rate of diffusion between Russian regions. Five stable clusters were identified, which were corresponding with idea of “five Russias” existence. Moscow and Saint Petersburg’s rate of diffusion was higher than in most countries, but there was a widespread periphery.

Suggested Citation

  • Baburin, Vyacheslav & Zemtsov, Stepan, 2014. "Diffussion of ICT-products and "five Russias"," MPRA Paper 68926, University Library of Munich, Germany, revised 10 May 2014.
  • Handle: RePEc:pra:mprapa:68926
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/68926/1/MPRA_paper_68926.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Konstantin A. Kholodilin & Aleksey Oshchepkov & Boriss Siliverstovs, 2012. "The Russian Regional Convergence Process," Eastern European Economics, Taylor & Francis Journals, vol. 50(3), pages 5-26, May.
    2. Raghuram Iyengar & Christophe Van den Bulte & Thomas W. Valente, 2011. "Opinion Leadership and Social Contagion in New Product Diffusion," Marketing Science, INFORMS, vol. 30(2), pages 195-212, 03-04.
    3. Madden, Gary & Coble-Neal, Grant & Dalzell, Brian, 2004. "A dynamic model of mobile telephony subscription incorporating a network effect," Telecommunications Policy, Elsevier, vol. 28(2), pages 133-144, March.
    4. Liikanen, Jukka & Stoneman, Paul & Toivanen, Otto, 2004. "Intergenerational effects in the diffusion of new technology: the case of mobile phones," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1137-1154, November.
    5. Abid A. Burki & Shirin Aslam, 2000. "The Role of Digital Technology and Regulations in the Diffusion of Mobile Phones in Asia," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 741-750.
    6. Yuriy Gorodnichenko & Jorge Martinez-Vazquez & Klara Sabirianova Peter, 2009. "Myth and Reality of Flat Tax Reform: Micro Estimates of Tax Evasion Response and Welfare Effects in Russia," Journal of Political Economy, University of Chicago Press, vol. 117(3), pages 504-554, June.
    7. Gruber, Harald & Verboven, Frank, 2001. "The diffusion of mobile telecommunications services in the European Union," European Economic Review, Elsevier, vol. 45(3), pages 577-588, March.
    8. Jenny C. Aker & Isaac M. Mbiti, 2010. "Mobile Phones and Economic Development in Africa," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 207-232, Summer.
    9. Stepan Zemtsov & Vyacheslav Baburin, 2013. "Innovation potential of regions in Northern Eurasia," ERSA conference papers ersa13p546, European Regional Science Association.
    10. Vahram Stepanyan, 2003. "Reforming Tax Systems: Experience of the Baltics, Russia, and Other Countries of the Former Soviet Union," IMF Working Papers 2003/173, International Monetary Fund.
    11. Elmar Kiesling & Markus Günther & Christian Stummer & Lea Wakolbinger, 2012. "Agent-based simulation of innovation diffusion: a review," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 20(2), pages 183-230, June.
    12. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April.
    13. Madden, Gary & Coble-Neal, Grant, 2004. "Economic determinants of global mobile telephony growth," Information Economics and Policy, Elsevier, vol. 16(4), pages 519-534, December.
    14. Rouvinen, Petri, 2006. "Diffusion of digital mobile telephony: Are developing countries different?," Telecommunications Policy, Elsevier, vol. 30(1), pages 46-63, February.
    15. Konstantin A. Kholodilin & Aleksey Oshchepkov & Boriss Siliverstovs, 2009. "The Russian Regional Convergence Process: Where Does It Go?," Discussion Papers of DIW Berlin 861, DIW Berlin, German Institute for Economic Research.
    16. Fedorov, Leonid, 2002. "Regional Inequality and Regional Polarization in Russia, 1990-99," World Development, Elsevier, vol. 30(3), pages 443-456, March.
    17. Rachinskiy, Andrey, 2010. "Mobile telecommunications’ diffusion in Russia," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 18(2), pages 111-122.
    18. Fan, Chengze Simon & Overland, Jody & Spagat, Michael, 1999. "Human Capital, Growth, and Inequality in Russia," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 618-643, December.
    19. Diego Comin & Bart Hobijn & Emilie Rovito, 2006. "Five Facts You Need to Know About Technology Diffusion," NBER Working Papers 11928, National Bureau of Economic Research, Inc.
    20. Mr. Jack Diamond, 2002. "The New Russian Budget System: A Critical Assessment and Future Reform Agenda," IMF Working Papers 2002/021, International Monetary Fund.
    21. Gruber, Harald, 2001. "Competition and innovation: The diffusion of mobile telecommunications in Central and Eastern Europe," Information Economics and Policy, Elsevier, vol. 13(1), pages 19-34, March.
    22. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    23. Singh, Sanjay Kumar, 0. "The diffusion of mobile phones in India," Telecommunications Policy, Elsevier, vol. 32(9-10), pages 642-651, October.
    24. Christophe Van den Bulte & Stefan Stremersch, 2004. "Social Contagion and Income Heterogeneity in New Product Diffusion: A Meta-Analytic Test," Marketing Science, INFORMS, vol. 23(4), pages 530-544, July.
    25. Wareham, Jonathan & Levy, Armando & Shi, Wei, 0. "Wireless diffusion and mobile computing: implications for the digital divide," Telecommunications Policy, Elsevier, vol. 28(5-6), pages 439-457, June.
    26. Ahn, Hyungtaik & Lee, Myeong-Ho, 1999. "An econometric analysis of the demand for access to mobile telephone networks," Information Economics and Policy, Elsevier, vol. 11(3), pages 297-305, September.
    27. Meade, Nigel & Islam, Towhidul, 2006. "Modelling and forecasting the diffusion of innovation - A 25-year review," International Journal of Forecasting, Elsevier, vol. 22(3), pages 519-545.
    28. Jack Diamond, 2003. "The new Russian budget system: Critical assessment and future reform agenda," OECD Journal on Budgeting, OECD Publishing, vol. 2(3), pages 119-147.
    29. Chu, Wen-Lin & Wu, Feng-Shang & Kao, Kai-Sheng & Yen, David C., 2009. "Diffusion of mobile telephony: An empirical study in Taiwan," Telecommunications Policy, Elsevier, vol. 33(9), pages 506-520, October.
    30. Harald Gruber & Pantelis Koutroumpis, 2011. "Mobile telecommunications and the impact on economic development [Discussion of “Why is infrastructure important?” in Alicia H. Munnell, (ed.), Is there a shortfall in public capital investment?]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 26(67), pages 387-426.
    31. Mahler, Alwin & Rogers, Everett M., 1999. "The diffusion of interactive communication innovations and the critical mass: the adoption of telecommunications services by German banks," Telecommunications Policy, Elsevier, vol. 23(10-11), pages 719-740, November.
    32. Wu, Feng-Shang & Chu, Wen-Lin, 2010. "Diffusion models of mobile telephony," Journal of Business Research, Elsevier, vol. 63(5), pages 497-501, May.
    33. Labonne, Julien & Chase, Robert S., 2009. "The power of information : the impact of mobile phones on farmers'welfare in the Philippines," Policy Research Working Paper Series 4996, The World Bank.
    34. Jang, Show-Ling & Dai, Shau-Chi & Sung, Simona, 2005. "The pattern and externality effect of diffusion of mobile telecommunications: the case of the OECD and Taiwan," Information Economics and Policy, Elsevier, vol. 17(2), pages 133-148, March.
    35. Heli Koski & Tobias Kretschmer, 2004. "Entry, Standards and Competition: Firm Strategies and the Diffusion of Mobile Telephony," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 26(1), pages 89-113, November.
    36. Frederic Carluer, 2005. "Dynamics of Russian regional clubs: The time of divergence," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 713-726.
    37. Minkyu Lee & Youngsang Cho, 2007. "The diffusion of mobile telecommunications services in Korea," Applied Economics Letters, Taylor & Francis Journals, vol. 14(7), pages 477-481.
    38. Silvia Massini, 2004. "The diffusion of mobile telephony in Italy and the UK: an empirical investigation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(3), pages 251-277.
    39. Gupta, Ruchita & Jain, Karuna, 2012. "Diffusion of mobile telephony in India: An empirical study," Technological Forecasting and Social Change, Elsevier, vol. 79(4), pages 709-715.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stepan Zemtsov & Vyacheslav Baburin, 2015. "Knowledge economy formation in Russian regions in 2000th," ERSA conference papers ersa15p1540, European Regional Science Association.
    2. Sergei Sidorov & Alexey Faizliev & Vladimir Balash & Olga Balash & Maria Krylova & Aleksandr Fomenko, 2021. "Extended innovation diffusion models and their empirical performance on real propagation data," Journal of Marketing Analytics, Palgrave Macmillan, vol. 9(2), pages 99-110, June.

    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. Meade, Nigel & Islam, Towhidul, 2015. "Forecasting in telecommunications and ICT—A review," International Journal of Forecasting, Elsevier, vol. 31(4), pages 1105-1126.
    2. Jha, Ashutosh & Saha, Debashis, 2020. "“Forecasting and analysing the characteristics of 3G and 4G mobile broadband diffusion in India: A comparative evaluation of Bass, Norton-Bass, Gompertz, and logistic growth models”," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    3. Avila, Luz Angelica Pirir & Lee, Deok-Joo & Kim, Taegu, 2018. "Diffusion and competitive relationship of mobile telephone service in Guatemala: An empirical analysis," Telecommunications Policy, Elsevier, vol. 42(2), pages 116-126.
    4. Thakur Dhakal & Dae-Eun Lim, 2020. "Understanding ICT adoption in SAARC member countries," Letters in Spatial and Resource Sciences, Springer, vol. 13(1), pages 67-80, April.
    5. Yamakawa, Peter & Rees, Gareth H. & Manuel Salas, José & Alva, Nikolai, 2013. "The diffusion of mobile telephones: An empirical analysis for Peru," Telecommunications Policy, Elsevier, vol. 37(6), pages 594-606.
    6. Zaber, Moinul & Sirbu, Marvin, 2012. "Impact of spectrum management policy on the penetration of 3G technology," Telecommunications Policy, Elsevier, vol. 36(9), pages 762-782.
    7. Honoré, Bidiasse, 2019. "Diffusion of mobile telephony: Analysis of determinants in Cameroon," Telecommunications Policy, Elsevier, vol. 43(3), pages 287-298.
    8. Ashutosh Jha & Debashis Saha, 2022. "Mobile Broadband for Inclusive Connectivity: What Deters the High-Capacity Deployment of 4G-LTE Innovation in India?," Information Systems Frontiers, Springer, vol. 24(4), pages 1305-1329, August.
    9. Gupta, Ruchita & Jain, Karuna, 2016. "Competition effect of a new mobile technology on an incumbent technology: An Indian case study," Telecommunications Policy, Elsevier, vol. 40(4), pages 332-342.
    10. Vogelsang, Ingo, 2010. "The relationship between mobile and fixed-line communications: A survey," Information Economics and Policy, Elsevier, vol. 22(1), pages 4-17, March.
    11. Xiaoxia Fu & Ping Zhang & Juzhi Zhang, 2017. "Forecasting and Analyzing Internet Users of China with Lotka–Volterra Model," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 34(01), pages 1-18, February.
    12. Wu, Feng-Shang & Chu, Wen-Lin, 2010. "Diffusion models of mobile telephony," Journal of Business Research, Elsevier, vol. 63(5), pages 497-501, May.
    13. Barman, Hemanta & Dutta, Mrinal Kanti & Nath, Hiranya K., 2018. "The telecommunications divide among Indian states," Telecommunications Policy, Elsevier, vol. 42(7), pages 530-551.
    14. Al-Alawi, Baha M. & Bradley, Thomas H., 2013. "Review of hybrid, plug-in hybrid, and electric vehicle market modeling Studies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 190-203.
    15. Varadharajan Sridhar, 2010. "An econometric analysis of mobile services growth across regions of India," Netnomics, Springer, vol. 11(3), pages 205-220, October.
    16. Rouvinen, Petri, 2006. "Diffusion of digital mobile telephony: Are developing countries different?," Telecommunications Policy, Elsevier, vol. 30(1), pages 46-63, February.
    17. K. Andersson & Ø Foros & F. Steen, 2009. "Text and voice: complements, substitutes or both?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 18(6), pages 1231-1247, December.
    18. Emanuele Giovannetti & Mohsen Hamoudia, 2022. "The interaction between direct and indirect network externalities in the early diffusion of mobile social networking," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 12(4), pages 617-642, December.
    19. Sergei Sidorov & Alexey Faizliev & Vladimir Balash & Olga Balash & Maria Krylova & Aleksandr Fomenko, 2021. "Extended innovation diffusion models and their empirical performance on real propagation data," Journal of Marketing Analytics, Palgrave Macmillan, vol. 9(2), pages 99-110, June.
    20. Fildes, Robert & Kumar, V., 2002. "Telecommunications demand forecasting--a review," International Journal of Forecasting, Elsevier, vol. 18(4), pages 489-522.

    More about this item

    Keywords

    geography of innovation; diffusion of innovation; Russian regions; mobile communication; logistic curve; Bass model; regions-innovators; index of innovativeness;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • R19 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:68926. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.