IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v46y2022i4s0308596121001658.html
   My bibliography  Save this article

Internet of things and the economics of 5G-based local industrial networks

Author

Listed:
  • Knieps, Günter
  • Bauer, Johannes M.

Abstract

Fifth generation (5G) networks raise governance and management challenges that did not exist in 3G and 4G wireless technologies. Advanced wireless functionality enables new applications and services based on smart, physical, network infrastructures, many of them expected to be localized. As a general-purpose technology, 5G can be configured in numerous ways to support innovative applications across many sectors. Smart network applications and services must integrate physical and virtual components in innovative ways. In addition, general capabilities of 5G must be combined with complementary technologies, such as big data analytics and edge cloud services, to create services for specific use cases. Varying throughput and latency requirements of distinct use cases require differentiated technical solutions. Appropriate frequencies must be aligned efficiently with other features within the footprint of particular, local industrial networks. National policy makers, suppliers, and users are responding differently to these governance and management challenges. These approaches balance differently the trade-offs between experimentation, differentiation, and harmonization. Comparative analysis can inform gradual improvements of the governance of 5G-based, local industrial networks.

Suggested Citation

  • Knieps, Günter & Bauer, Johannes M., 2022. "Internet of things and the economics of 5G-based local industrial networks," Telecommunications Policy, Elsevier, vol. 46(4).
    • Handle: RePEc:eee:telpol:v:46:y:2022:i:4:s0308596121001658
    DOI: 10.1016/j.telpol.2021.102261
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596121001658
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.telpol.2021.102261?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Bresnahan, Timothy F. & Trajtenberg, M., 1995. "General purpose technologies 'Engines of growth'?," Journal of Econometrics, Elsevier, vol. 65(1), pages 83-108, January.
    2. Matinmikko-Blue, Marja & Yrjölä, Seppo & Ahokangas, Petri & Hämmäinen, Heikki, 2021. "Analysis of 5G spectrum awarding decisions: How do different countries consider emerging local 5G networks?," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238039, International Telecommunications Society (ITS).
    3. Bauer, Johannes M. & Knieps, Günter, 2018. "Complementary innovation and network neutrality," Telecommunications Policy, Elsevier, vol. 42(2), pages 172-183.
    4. Ahokangas, Petri & Matinmikko-Blue, Marja & Yrjölä, Seppo & Hämmäinen, Heikki, 2020. "Future 5G platform ecosystems: Case study of a digitalized port stakeholders' new interactions and value configurations," ITS Conference, Online Event 2020 224842, International Telecommunications Society (ITS).
    5. Hoeschele, Thomas & Dietzel, Christoph & Kopp, Daniel & Fitzek, Frank H.P. & Reisslein, Martin, 2021. "Importance of Internet Exchange Point (IXP) infrastructure for 5G: Estimating the impact of 5G use cases," Telecommunications Policy, Elsevier, vol. 45(3).
    6. Andrew Kusiak, 2018. "Smart manufacturing," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 508-517, January.
    7. Sörries, Bernd & Nett, Lorenz, 2019. "Frequenzmanagement: Lokale/regionale Anwendungsfälle bei 5G für bundesweite Mobilfunknetzbetreiber sowie für regionale und lokale Betreiber unter besonderer Betrachtung der europäischen Länder sowie v," WIK Discussion Papers 452, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.
    8. Günter Knieps, 2017. "Internet of Things, future networks, and the economics of virtual networks," Competition and Regulation in Network Industries, , vol. 18(3-4), pages 240-255, September.
    9. Vu, Khuong & Hanafizadeh, Payam & Bohlin, Erik, 2020. "ICT as a driver of economic growth: A survey of the literature and directions for future research," Telecommunications Policy, Elsevier, vol. 44(2).
    10. Lehr, William & Queder, Fabian & Haucap, Justus, 2021. "5G: A new future for Mobile Network Operators, or not?," Telecommunications Policy, Elsevier, vol. 45(3).
    11. Guenter Knieps, 2021. "Data-driven sector coupling in 5G-based smart networks," Competition and Regulation in Network Industries, , vol. 22(1), pages 53-68, March.
    12. Günter Knieps, 2017. "Internet of Things and the economics of smart sustainable cities," Competition and Regulation in Network Industries, , vol. 18(1-2), pages 115-131, March.
    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. Markendahl, Jan & Beckman, Claes, 2022. "Can local 5G networks using local spectrum be used as platform for digitalization of industrial systems and services?," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265657, International Telecommunications Society (ITS).
    2. Guenter Knieps, 2023. "The Governance of Big Data and Artificial Intelligence in Network Industries," Competition and Regulation in Network Industries, , vol. 24(2-3), pages 57-71, June.
    3. Benseny, Jaume & Lahteenmaki, Jarno & Toyli, Juuso & Hammainen, Heikki, 2023. "Urban wireless traffic evolution: The role of new devices and the effect of policy," Telecommunications Policy, Elsevier, vol. 47(7).
    4. Heikkilä, Jussi & Rissanen, Julius & Ali-Vehmas, Timo, 2023. "Coopetition, standardization and general purpose technologies: A framework and an application," Telecommunications Policy, Elsevier, vol. 47(4).

    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. Bauer, Johannes M. & Bohlin, Erik, 2022. "Regulation and innovation in 5G markets," Telecommunications Policy, Elsevier, vol. 46(4).
    2. Günter Knieps, 2019. "Internet der Dinge und die Zukunft der Netzökonomie [Internet of Things and the Future of Network Economics]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 99(5), pages 348-354, May.
    3. 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).
    4. Briglauer, Wolfgang & Stocker, Volker & Whalley, Jason, 2018. "Public Policy Targets in EU Broadband Markets: The Role of Technological Neutrality," 29th European Regional ITS Conference, Trento 2018 184936, International Telecommunications Society (ITS).
    5. Edquist, Harald, 2022. "The economic impact of mobile broadband speed," Telecommunications Policy, Elsevier, vol. 46(5).
    6. Günter Knieps, 2017. "Internet of Things, future networks, and the economics of virtual networks," Competition and Regulation in Network Industries, , vol. 18(3-4), pages 240-255, September.
    7. Stocker Volker & Knieps Guenter, 2018. "Network Neutrality Through the Lens of Network Economics," Review of Network Economics, De Gruyter, vol. 17(3), pages 115-150, September.
    8. Edward J. Oughton & Ashutosh Jha, 2021. "Supportive 5G Infrastructure Policies are Essential for Universal 6G: Assessment using an Open-source Techno-economic Simulation Model utilizing Remote Sensing," Papers 2102.08086, arXiv.org, revised Jun 2021.
    9. Parcu, Pier Luigi & Innocenti, Niccolò & Carrozza, Chiara, 2022. "Ubiquitous technologies and 5G development. Who is leading the race?," Telecommunications Policy, Elsevier, vol. 46(4).
    10. Heikkilä, Jussi & Rissanen, Julius & Ali-Vehmas, Timo, 2023. "Coopetition, standardization and general purpose technologies: A framework and an application," Telecommunications Policy, Elsevier, vol. 47(4).
    11. Edward J. Oughton & William Lehr, 2022. "Surveying 5G Techno-Economic Research to Inform the Evaluation of 6G Wireless Technologies," Papers 2201.02272, arXiv.org, revised Jan 2022.
    12. Guenter Knieps, 2021. "Data-driven sector coupling in 5G-based smart networks," Competition and Regulation in Network Industries, , vol. 22(1), pages 53-68, March.
    13. Choe, Hyoung-Seon & Yang, Chang-Gyu & Jun, Sung-Youl & Lee, Sang-Gun, 2023. "A study on forward and backward linkage effects in South Korea's telecom industry across generations," Telecommunications Policy, Elsevier, vol. 47(8).
    14. Antonin BERGEAUD & Gilbert Cette & Rémy Lecat, 2017. "What role did education, equipment age and technology play in 20th century productivity growth?," Rue de la Banque, Banque de France, issue 43, may..
    15. Markendahl, Jan & Beckman, Claes, 2022. "Can local 5G networks using local spectrum be used as platform for digitalization of industrial systems and services?," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265657, International Telecommunications Society (ITS).
    16. Matthijs J. Janssen, 2015. "Cross-specialization: A New Perspective on Industry Policy," Papers in Evolutionary Economic Geography (PEEG) 1519, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2015.
    17. Marina Rybalka, 2015. "The innovative input mix. Assessing the importance of R&D and ICT investments for firm performance in manufacturing and services," Discussion Papers 801, Statistics Norway, Research Department.
    18. Irene Bertschek & Joern Block & Alexander S. Kritikos & Caroline Stiel, 2024. "German financial state aid during Covid-19 pandemic: Higher impact among digitalized self-employed," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 36(1-2), pages 76-97, January.
    19. repec:ipg:wpaper:2014-587 is not listed on IDEAS
    20. 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.
    21. Janet L. Yellen, 2005. "The U.S. economic outlook," Speech 5, Federal Reserve Bank of San Francisco.

    More about this item

    Keywords

    Internet of things (IoT); 5G; Local industrial networks; General-purpose technology; Edge cloud; Spectrum policy; Innovational complementarities;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

    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:telpol:v:46:y:2022:i:4:s0308596121001658. 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.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    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.