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New Technology and Entrepreneurship

Author

Listed:
  • Hvide, Hans K.
  • Meling, Tom G.

Abstract

We study how entrepreneurs respond to investment opportunities created by new technologies. Using the staggered rollout of broadband internet in Norway as a natural experiment, we find that access to the new technology increases startup rates by about 25% without reducing their quality. The effects are strongest in ICT-intensive industries, and treated entrepreneurs are more likely to invest in complementary assets such as computers. Consistent with existing literature, established firms show a more muted response to the new technology. Our findings suggest that entrepreneurs play a key role in adapting the economy to technological change.

Suggested Citation

  • Hvide, Hans K. & Meling, Tom G., 2026. "New Technology and Entrepreneurship," CEPR Discussion Papers 21200, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:21200
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    File URL: https://cepr.org/publications/DP21200
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    More about this item

    Keywords

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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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