IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v219y2025ics0040162525002823.html

How do state internet regulations impact innovation? A cross-country configural narrative

Author

Listed:
  • Ahangama, Supunmali
  • Krishnan, Satish
  • Singh, Nidhi
  • Vishnoi, Sushant Kumar

Abstract

Innovation and the state's commitment to innovation are key factors driving a country's economic growth and social well-being. Internet-based systems can foster high levels of innovation. However, as the Internet is a double-edged sword, it is essential to introduce regulations to mitigate potential detrimental effects. In most cases, the multifaceted impact of internet regulations on innovation performance seems unexplored. Based on Complexity Theory and configurational analysis, this paper examines the role of content coverage in regulations, the government's ability to regulate, and the approach followed by the government to control internet regulations on innovation performance. Publicly archived cross-sectional data from 130 countries for the years 2021 and 2022 were used for the Fuzzy-set Qualitative Comparative Analysis. The findings suggest that regulations to safeguard free speech, privacy laws, and the government's ability to enforce restrictions significantly contribute to high innovation performance, with mixed results for low innovation. Furthermore, the impact of internet regulations on online creativity, which is a key aspect of innovation, is investigated to identify similar findings. The research implications of the findings will be to extend theoretical discourse on innovation and regulations, while the findings will be valuable for policymakers in developing an innovation ecosystem in low-innovation countries.

Suggested Citation

  • Ahangama, Supunmali & Krishnan, Satish & Singh, Nidhi & Vishnoi, Sushant Kumar, 2025. "How do state internet regulations impact innovation? A cross-country configural narrative," Technological Forecasting and Social Change, Elsevier, vol. 219(C).
    • Handle: RePEc:eee:tefoso:v:219:y:2025:i:c:s0040162525002823
    DOI: 10.1016/j.techfore.2025.124251
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162525002823
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2025.124251?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
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Szczepaniuk, Edyta Karolina & Szczepaniuk, Hubert, 2022. "Analysis of cybersecurity competencies: Recommendations for telecommunications policy," Telecommunications Policy, Elsevier, vol. 46(3).
    2. Wang, Quan-Jing & Feng, Gen-Fu & Chen, Yin E. & Wen, Jun & Chang, Chun-Ping, 2019. "The impacts of government ideology on innovation: What are the main implications?," Research Policy, Elsevier, vol. 48(5), pages 1232-1247.
    3. Pappas, Ilias O. & Woodside, Arch G., 2021. "Fuzzy-set Qualitative Comparative Analysis (fsQCA): Guidelines for research practice in Information Systems and marketing," International Journal of Information Management, Elsevier, vol. 58(C).
    4. Philippe Aghion & Antonin Bergeaud & John Van Reenen, 2023. "The Impact of Regulation on Innovation," American Economic Review, American Economic Association, vol. 113(11), pages 2894-2936, November.
    5. Wang, Quan-Jing & Feng, Gen-Fu & Wang, Hai-Jie & Chang, Chun-Ping, 2021. "The impacts of democracy on innovation: Revisited evidence," Technovation, Elsevier, vol. 108(C).
    6. Ragin, Charles C., 2000. "Fuzzy-Set Social Science," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226702773, September.
    7. Xu Xu & Alison Watts & Markum Reed, 2019. "Does access to internet promote innovation? A look at the U.S. broadband industry," Growth and Change, Wiley Blackwell, vol. 50(4), pages 1423-1440, December.
    8. He Li & Lu Yu & Wu He, 2019. "The Impact of GDPR on Global Technology Development," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 22(1), pages 1-6, January.
    9. Ho, Kung-Cheng & Shen, Xixi & Yan, Cheng & Hu, Xiang, 2023. "Influence of green innovation on disclosure quality: Mediating role of media attention," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    10. Bhimani, Hardik & Mention, Anne-Laure & Barlatier, Pierre-Jean, 2019. "Social media and innovation: A systematic literature review and future research directions," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 251-269.
    11. Peter Meso & Philip Musa & Detmar Straub & Victor Mbarika, 2009. "Information infrastructure, governance, and socio-economic development in developing countries," European Journal of Information Systems, Taylor & Francis Journals, vol. 18(1), pages 52-65, February.
    12. Schot, Johan & Steinmueller, W. Edward, 2018. "Three frames for innovation policy: R&D, systems of innovation and transformative change," Research Policy, Elsevier, vol. 47(9), pages 1554-1567.
    13. Supunmali Ahangama, 2023. "Relating Social Media Diffusion, Education Level and Cybersecurity Protection Mechanisms to E-Participation Initiatives: Insights from a Cross-Country Analysis," Information Systems Frontiers, Springer, vol. 25(5), pages 1695-1711, October.
    14. Ahmad, Manzoor, 2021. "Non-linear dynamics of innovation activities over the business cycles: Empirical evidence from OECD economies," Technology in Society, Elsevier, vol. 67(C).
    15. Zheng, Lu & Ulrich, Klaus & Sendra-García, Javier, 2021. "Qualitative comparative analysis: Configurational paths to innovation performance," Journal of Business Research, Elsevier, vol. 128(C), pages 83-93.
    16. Yanfeng Zheng & Qinyu (Ryan) Wang, 2020. "Shadow of the great firewall: The impact of Google blockade on innovation in China," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2234-2260, December.
    17. Granstrand, Ove & Holgersson, Marcus, 2020. "Innovation ecosystems: A conceptual review and a new definition," Technovation, Elsevier, vol. 90.
    18. Yu, Tiffany Hui-Kuang & Huarng, Kun-Huang & Huang, Duen-Huang, 2021. "Causal complexity analysis of the Global Innovation Index," Journal of Business Research, Elsevier, vol. 137(C), pages 39-45.
    19. Beynon, Malcolm & Jones, Paul & Pickernell, David, 2016. "Country-level investigation of innovation investment in manufacturing: Paired fsQCA of two models," Journal of Business Research, Elsevier, vol. 69(11), pages 5401-5407.
    20. repec:ucp:bkecon:9780226702766 is not listed on IDEAS
    21. Vasist, Pramukh Nanjundaswamy & Krishnan, Satish, 2024. "Powered by innovation, derailed by disinformation: A multi-country analysis of the influence of online political disinformation on nations' innovation performance," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    22. Mariana Mazzucato & Rainer Kattel & Josh Ryan-Collins, 2020. "Challenge-Driven Innovation Policy: Towards a New Policy Toolkit," Journal of Industry, Competition and Trade, Springer, vol. 20(2), pages 421-437, June.
    23. repec:hal:pseptp:halshs-04330712 is not listed on IDEAS
    24. Cheryl, Barr-Kumarakulasinghe & Ng, Boon-Kwee & Wong, Chan-Yuan, 2021. "Governing the progress of internet-of-things: Ambivalence in the quest of technology exploitation and user rights protection," Technology in Society, Elsevier, vol. 64(C).
    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. Vasist, Pramukh Nanjundaswamy & Krishnan, Satish, 2024. "Powered by innovation, derailed by disinformation: A multi-country analysis of the influence of online political disinformation on nations' innovation performance," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    2. Huarng, Kun-Huang & Yu, Tiffany Hui-Kuang, 2022. "Causal complexity analysis for fintech adoption at the country level," Journal of Business Research, Elsevier, vol. 153(C), pages 228-234.
    3. Erzurumlu, S. Sinan & Erzurumlu, Yaman O. & Yoon, YongKi, 2022. "National innovation systems and dynamic impact of institutional structures on national innovation capability: A configurational approach with the OKID method," Technovation, Elsevier, vol. 114(C).
    4. Yoon, Hyungseok (David) & Boudreaux, Christopher & Kim, Namil, 2024. "Connecting the dots between democracy and innovation: The role of pro-market institutions and information processing," Research Policy, Elsevier, vol. 53(8).
    5. Yu, Tiffany Hui-Kuang & Huarng, Kun-Huang, 2024. "Causal analysis of SDG achievements," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    6. Yin, Hua-Tang & Wen, Jun & Chang, Chun-Ping, 2022. "Science-technology intermediary and innovation in China: Evidence from State Administration for Market Regulation, 2000–2019," Technology in Society, Elsevier, vol. 68(C).
    7. Yu, Tiffany Hui-Kuang & Huarng, Kun-Huang, 2023. "Configural analysis of GII’s internal structure," Journal of Business Research, Elsevier, vol. 154(C).
    8. Mehmet Ali Koseoglu & Hasan Evrim Arici & Omer Faruk Aladag, 2026. "Machine Learning Analysis of Global Innovation Index Enablers: Regional Variations and Covid-19 Effects," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 3337-3369, April.
    9. Osakwe, Christian Nedu & Ogunmokun, Oluwatobi A. & Elgammal, Islam & Kwarteng, Michael Adu, 2025. "Individuals' attitudes and their adoption intentions of central bank digital currency: Combining theories and analytics for deeper insights," Technological Forecasting and Social Change, Elsevier, vol. 210(C).
    10. Meina Zhou & Yiqun Sun & Hao Ji, 2025. "The Impact of Financial Inclusion on Sustainable Development in China: A Panel fsQCA Analysis," SAGE Open, , vol. 15(4), pages 21582440251, December.
    11. Shen Zhong & Zhicheng Zhou & Hongjun Jing & Daizhi Jin, 2025. "What Affects Durable National Innovation Performance? An Analysis in the Context of the COVID-19 Pandemic," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(3), pages 11856-11895, September.
    12. Di Paola, Nadia & Chari, Simos & Iannacci, Federico & Kraus, Sascha, 2025. "Configurational theory in business and management research: Status quo and guidelines for the application of qualitative comparative analysis (QCA)," Technological Forecasting and Social Change, Elsevier, vol. 211(C).
    13. Coenen, Tom B.J. & Wiarda, Martijn & Visscher, Klaasjan & Penna, Caetano C.R. & Volker, Leentje, 2025. "Mission-Oriented Transition Assessment as a reflective approach to mission governance," Technological Forecasting and Social Change, Elsevier, vol. 219(C).
    14. Malte Jütting, 2020. "Exploring Mission-Oriented Innovation Ecosystems for Sustainability: Towards a Literature-Based Typology," Sustainability, MDPI, vol. 12(16), pages 1-28, August.
    15. Oier Imaz & Andoni Eizagirre, 2020. "Responsible Innovation for Sustainable Development Goals in Business: An Agenda for Cooperative Firms," Sustainability, MDPI, vol. 12(17), pages 1-20, August.
    16. Borozan, Dj, 2022. "Detecting a structure in the European energy transition policy instrument mix: What mix successfully drives the energy transition?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 165(C).
    17. George Bogdan Drăgan & Victor Tiberius & Katharina Rosin & Wissal Ben Arfi & Adrian Micu & Alexandru Căpățînă, 2026. "Motivation and collaboration: Unraveling entrepreneurship scholars’ research performance," Review of Managerial Science, Springer, vol. 20(4), pages 1291-1332, April.
    18. repec:ers:journl:v:xxiv:y:2021:i:3:p:450-468 is not listed on IDEAS
    19. Wang, Quan-Jing & Sun, Yi-Hong, 2022. "The impact of governmental ideology on forest preservation: Evidence from cross-country data," Land Use Policy, Elsevier, vol. 119(C).
    20. Huang, Duen-Huang & Chueh, Hao-En, 2022. "Behavioral intention to continuously use learning apps: A comparative study from Taiwan universities," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    21. Mohammad Fakhrul Islam & Mohammad Imran Hossain & Md. Rashed & Md. Naeemur Rahman & Mohammad Imtiaz Hossain & Md. Faisal-E-Alam, 2025. "Strategizing for Sustainability: Examining the Dynamic Interplay of the Circular Economy, Green Technology Innovation, and Green Performance," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 26(4), pages 935-961, December.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:eee:tefoso:v:219:y:2025:i:c:s0040162525002823. 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: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    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.