The Impact of Internet Access on Innovation and Entrepreneurship in Africa

This paper investigates the effects of access to high-speed internet on innovation andentrepreneurship in Africa. The identification strategy exploits the staggered arrival of submarine internet cablesto the coast of Africa and the subsequent rollout of terrestrial fiber network across the continent. The findingsshow a positive effect of access to high-speed internet on innovation at the firm level, with availability of digitalskills within the firm playing a key role in the internet-innovation nexus. The paper also finds evidence ofinternet-induced entrepreneurship: the probability that a household establishes a non-farm business increases whenconnected to the internet. However, the increase in entrepreneurial activities is largely concentrated in theservice sector.