Explaining The Territorial Adoption Of New Technologies - A Spatial Econometric Approach
The notion that Information and Communication Technology would have reduced the economic importance of geographic distance has been proposed with energy in the post-Internet literature (Cairncross, 2001). According to this view, the New Economy would work in a space rather than a place, cost of transport would be drastically reduced, distance would be less important, and peripheral regions would benefit from opportunities that were not available in the economy based on manufacturing industry (Negroponte, 1995; Cairncross, 1997; Kelly, 1998; Compaine, 2001). Since ICT are mostly based on immaterial and human capital investment, regions or areas that have historically suffered from isolation, large cost of transportation, or lack of physical private and public infrastructure might find new paths for growth. Consequently, according to this view, the concentration of income opportunities and wealth should decrease over time. Although other predictions were also present in the debate over the impact of the digital economy (e.g. Norris, 2001; UNDP; 2001), this view was largely dominant. The reality is not so rosy. Not only there are huge disparities in the intensity with which ICT are adopted and used across countries, but also there are still large differences within industrialized countries. Indeed, differences in economic development still shape the rate of the adoption of these technologies, at the firm, regional and country level. The reasons behind these stylized facts have been investigated at length in recent times. This paper contributes to the literature in several ways. First, it focuses on intra-national or regional differences, which is a much less explored dimension of the digital divide. Second, it uses a new metric for the adoption of ICT, namely the number of second level Internet domain names, registered under the ccTLD “.it.”. Finally, it explicitly combines the analysis of determinants with a spatial econometric approach. Thanks to the availability of panel data for both the dependent and the explanatory variables (time period: 1990-2001), spatial and temporal effect are simultaneously taken into account. Panel data techniques that account for temporal correlations are in widespread use while there have been a variety of studies accounting for spatial autocorrelation (see for instance Coughlin et al. 2003; Dubin, 1992; McMillan, 2004). However one of the major drawbacks to many analyses is that they fail to integrate the spatial and temporal correlations that are present in geographical systems (Elhorst, 2003).
|Date of creation:||Aug 2005|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Majumdar, Sumit K. & Venkataraman, S., 1993. "New technology adoption in US telecommunications: The role of competitive pressures and firm-level inducements," Research Policy, Elsevier, vol. 22(5-6), pages 521-536, November.
- Keller, Wolfgang, 2002.
"International Technology Diffusion,"
CEPR Discussion Papers
3133, C.E.P.R. Discussion Papers.
- Grubesic, Tony H., 0. "Spatial dimensions of Internet activity," Telecommunications Policy, Elsevier, vol. 26(7-8), pages 363-387, August.
- Dasgupta, Susmita & Lall, Somik & Wheeler, David, 2001. "Policy reform, economic growth, and the digital divide - an econometric analysis," Policy Research Working Paper Series 2567, The World Bank.
- Gordon, Robert J, 2004.
"Five Puzzles in the Behaviour of Productivity, Investment and Innovation,"
CEPR Discussion Papers
4414, C.E.P.R. Discussion Papers.
- Robert J. Gordon, 2004. "Five Puzzles in the Behavior of Productivity, Investment, and Innovation," NBER Working Papers 10660, National Bureau of Economic Research, Inc.
- W. Edward STEINMUELLER, 2001. "ICTs and the possibilities for leapfrogging by developing countries," International Labour Review, International Labour Organization, vol. 140(2), pages 193-210, 06.
- Caselli, Francesco & Coleman II, Wilbur John, 2001.
"Cross-Country Technology Diffusion: The Case of Computers,"
CEPR Discussion Papers
2744, C.E.P.R. Discussion Papers.
- Francesco Caselli & Wilbur John Coleman, 2001. "Cross-Country Technology Diffusion: The Case of Computers," American Economic Review, American Economic Association, vol. 91(2), pages 328-335, May.
- Francesco Caselli & Wilbur John Coleman II, 2001. "Cross-Country Technology Diffusion: The Case of Computers," NBER Working Papers 8130, National Bureau of Economic Research, Inc.
- Bradford F. Mills & Brian E. Whitacre, 2003. "Understanding the Non-Metropolitan-Metropolitan Digital Divide," Growth and Change, Wiley Blackwell, vol. 34(2), pages 219-243.
- Lisa M Lynch & Sandra E Black, 2002.
"How to Compete: The Impact of Workplace Practices and Information Technology on Productivity,"
02-04, Center for Economic Studies, U.S. Census Bureau.
- Sandra E. Black & Lisa M. Lynch, 2001. "How To Compete: The Impact Of Workplace Practices And Information Technology On Productivity," The Review of Economics and Statistics, MIT Press, vol. 83(3), pages 434-445, August.
- S. Black & L. Lynch, 1997. "How to compete: the impact of workplace practices and information technology on productivity," LSE Research Online Documents on Economics 20298, London School of Economics and Political Science, LSE Library.
- Sandra E. Black & Lisa M. Lynch, 1997. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," NBER Working Papers 6120, National Bureau of Economic Research, Inc.
- S Black & L Lynch, 1997. "How to Compete: The Impact of Workplace Practices and Information Technology on Productivity," CEP Discussion Papers dp0376, Centre for Economic Performance, LSE.
- Erik Brynjolfsson & Lorin Hitt, 1996.
"Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending,"
INFORMS, vol. 42(4), pages 541-558, April.
- Brynjolfsson, Erik. & Hitt, Lorin M., 1995. "Paradox lost? : firm-level evidence on the returns to information systems spending," Working papers 3786-95., Massachusetts Institute of Technology (MIT), Sloan School of Management.
- R. Paci & R. Pala & E. Marrocu, 2000. "Estimation of total factor productivity for regions and sectors in Italy. A panel cointegration approach," Working Paper CRENoS 200016, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Feldman, Maryann P. & Audretsch, David B., 1999.
"Innovation in cities:: Science-based diversity, specialization and localized competition,"
European Economic Review,
Elsevier, vol. 43(2), pages 409-429, February.
- Audretsch, David B & Feldman, Maryann P, 1998. "Innovation in Cities: Science-Based Diversity, Specialization and Localized Competition," CEPR Discussion Papers 1980, C.E.P.R. Discussion Papers.
- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
- Wallsten, Scott, 2003. "Regulation and internet use in developing countries," Policy Research Working Paper Series 2979, The World Bank.
- Fernando Lera & Margarita Billón, 2004. "The North-South Digital Divide in Information and Communication Technologies Development: the Case for Spanish Regions," ERSA conference papers ersa04p307, European Regional Science Association.
- Geroski, P. A., 2000.
"Models of technology diffusion,"
Elsevier, vol. 29(4-5), pages 603-625, April.
- repec:reg:rpubli:343 is not listed on IDEAS
- Ellison, Glenn & Glaeser, Edward L, 1997.
"Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach,"
Journal of Political Economy,
University of Chicago Press, vol. 105(5), pages 889-927, October.
- Glenn Ellison & Edward L. Glaeser, 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," NBER Working Papers 4840, National Bureau of Economic Research, Inc.
- Ellison, G. & Glaeser, E.L., 1994. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Working papers 94-27, Massachusetts Institute of Technology (MIT), Department of Economics.
- Meng, Qingxuan & Li, Mingzhi, 2002. "New Economy and ICT development in China," Information Economics and Policy, Elsevier, vol. 14(2), pages 275-295, June.
- Kiiski, Sampsa & Pohjola, Matti, 2001.
"Cross-country Diffusion of the Internet,"
Working Paper Series
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Mueller, Milton L, 1998. "The battle over Internet domain names: Global or national TLDs?," Telecommunications Policy, Elsevier, vol. 22(2), pages 89-107, March.
- Marcello Pagnini, 2002. "Misura e determinanti dellï¿½agglomerazione spaziale nei comparti industriali in Italia," Temi di discussione (Economic working papers) 452, Bank of Italy, Economic Research and International Relations Area.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa05p92. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.