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Regional Disparity in ICT Adoption: an Empirical Evaluation of The Effects of Subsidies in Italy

This paper investigates on a marked case of regional inequality concerning the information and communication technology adoption process and the role of subsidies in Italy. There is a consolidated and persistent gap between the industrialized North and the sensibly backward South. Econometric results show that adoption of ICT is affected by the geographical location, the industry and firm characteristics. A matching estimator is applied to explore subsidies effectiveness. We find that subsidies have a significant impact but only for small firms. Given the firm system in Italy, we conclude that, to limit the acceleration of Italian North-South dualism, subsidies should only be granted to small firms.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200608.

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Date of creation: 2006
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Handle: RePEc:cns:cnscwp:200608
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  21. Claudio A. Piga & Marco Vivarelli, 2003. "Internal and External R&D: A Sample Selection Approach," Papers on Entrepreneurship, Growth and Public Policy 2004-05, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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  23. F. Pigliaru, 2001. "Analisi della convergenza regionale: troppa o troppo poca?," Working Paper CRENoS 200107, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
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  28. Sandro Trento & Massimo Warglien, 2001. "Nuove tecnologie e cambiamenti organizzativi: alcune implicazioni per le imprese italiane," Temi di discussione (Economic working papers) 428, Bank of Italy, Economic Research and International Relations Area.
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