nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2020‒05‒11
six papers chosen by
Marek Giebel
Universität Dortmund

  1. The growing digital divide in Europe and the United States By Rückert, Désirée; Veugelers, Reinhilde; Weiss, Christoph
  2. New Productivity Drivers: Revisiting the Role of Digital Capital, FDI and Integration at Aggregate and Sectoral Levels By Amat Adarov; Robert Stehrer
  3. ICT Adoption, Competition and Innovation of Informal Firms in West Africa: Comparative Study of Ghana and Nigeria By Alhassan A. Karakara; Evans S. Osabuohien
  4. Digital technologies and firm performance: Evidence from Europe By Cathles, Alison; Nayyar, Gaurav; Rückert, Désirée
  5. Overview of the Sudan Uprising By Nour, Samia
  6. COVID-19: Insights from Innovation Economists (with French executive summary) By Younes, George Abi; Ayoubi, Charles; Ballester, Omar; Cristelli, Gabriele; de Rassenfosse, Gaetan; Foray, Dominique; Gaule, Patrick; van den Heuvel, Matthias; Webster, Beth; Zhou, Ling

  1. By: Rückert, Désirée; Veugelers, Reinhilde; Weiss, Christoph
    Abstract: Using a new survey on digitalisation activities of firms in the EU and the US, we identify digitalisation profiles based on the current use of digital technologies and future investment plans in digitalisation. Our analysis confirms the trend toward digital polarisation and a growing digital divide in the corporate landscape with, on one side, many firms that are not digitally active, and on the other side, a substantial number of digitally active firms forging ahead. Old small firms, with less than 50 employees and more than 10 years old, are significantly more likely to be persistently digitally non-active. We show that these persistently non-digital firms are less likely to be innovative, increase employment or command higher mark-ups. These trends are likely to exacerbate the digital divide across firms in the EU and the US.
    Keywords: digital technology,investment,firm performance
    JEL: D22 E22 L25
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:eibwps:202007&r=all
  2. By: Amat Adarov (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: The paper studies the drivers of productivity at country and sectoral levels over the period 2000-2017 with the focus on the impact of capital accumulation and structure. The analysis confirms an especially important role of ICT and intangible digital capital for productivity growth, particularly in the manufacturing sectors. While backward global value chain participation and EU integration are also found to be instrumental for accelerating productivity growth, the impact of inward foreign direct investment is not robustly detected when the data is purged from the effects of special purpose entities and outlier countries.
    Keywords: Productivity, digitalisation, ICT, intangible capital, FDI, capital accumulation, global value chains
    JEL: F14 F15 F21 E22 O47
    Date: 2020–04
    URL: http://d.repec.org/n?u=RePEc:wii:wpaper:178&r=all
  3. By: Alhassan A. Karakara (University of Cape Coast, Ghana); Evans S. Osabuohien (CEPDeR, Covenant University, Ota, Nigeria)
    Abstract: Purpose – This study investigates how ICT adoption enhances the innovativeness of informal firms in West Africa, using the cases of Ghana and Nigeria. Design/methods/approach – The study used the World Bank Enterprise Survey data 2014 for Ghana and Nigeria with binary logistic regression analysis to achieve this. Four different innovations are modelled. They include: first, whether a firm has innovated based on producing a new product or significantly improved product; second, whether a firm has innovated in its methods of production or services; third, whether a firm has innovated in terms of its organisational structure; and fourth, whether a firm has introduced a new and improved marketing method. Findings – The results show that the use of email, cellphone and website has a positive impact on the four types of innovations modelled. However, these effects varied markedly between Ghana and Nigeria. Firms’ spending on R&D, firm giving its employees the chance to develop their ideas and when firm competes with others; all positively impact on the four types of innovations. Thus, the study recommends that policies should be geared towards making firm have more access to ICTs to enable them to be more innovative to serve clients and the economy. Originality/value – This study differs by concentrating on how the adoption of ICTs could help firms to introduce innovations into their companies in two West African countries, namely: Ghana and Nigeria. Thus, it complements literature on informal firms’ innovation efforts in West Africa.
    Keywords: Firms, ICT adoption, Innovation, West Africa, World Bank Enterprise Survey data, Ghana, Nigeria
    JEL: D21 L60 L80 O14 O30
    Date: 2020–01
    URL: http://d.repec.org/n?u=RePEc:agd:wpaper:20/023&r=all
  4. By: Cathles, Alison; Nayyar, Gaurav; Rückert, Désirée
    Abstract: As the productivity of the European economy shows signs of slowing down, many hopes are pinned on digital technologies to reverse this trend. This study uses data from the EIBIS 2019 survey to examine whether the adoption of different digital technologies (such as advanced robotics, 3D printing, or Internet of Things) by firms in the EU have different impacts on productivity. It also examines whether these different technologies have different implications for employment growth, and whether there are complementarities between technologies when it comes to firm performance.
    Date: 2020
    URL: http://d.repec.org/n?u=RePEc:zbw:eibwps:202006&r=all
  5. By: Nour, Samia (University of Khartoum, and UNU-MERIT, Maastricht University)
    Abstract: This paper provides an overview of the Sudan Uprising and discusses the major causes and factors that contributed to the success of the Sudan Uprising and potential opportunities and major challenges following the Sudan Uprising. We improve understanding, fill the gaps in the literature and provide an extremely valuable contribution to the literature by presenting a new and more comprehensive analysis and investigation of the factors that caused and contributed to the success of the Sudan Uprising and potential opportunities and major challenges following Sudan Uprising. A novel element in our analysis is that we investigate the various causes including economic causes, social and human development causes, political causes, institutional causes and the causes related to the lack of freedoms that caused the Sudan Uprising, we examine the dynamic interaction between the internal factors (youth, women, ICT, the Sudanese Professional Association, and University of Khartoum Teaching Staff Initiative), and external factors (diaspora) that contributed to supporting Sudan Uprising and we explain potential opportunities and major challenges following Sudan Uprising. From policy perspective, the relevance of our analysis is that we explain the causes of the Sudan Uprising, the internal and external factors that supported Sudan Uprising and potential opportunities and major challenges following the Sudan Uprising. Our findings support the first hypothesis that a combination of mixed factors and causes including economic causes, social and human development causes, political causes, institutional causes and the causes related to the lack of freedoms caused the Sudan Uprising. Our results corroborate the second hypothesis that the dynamic interaction between the internal factors (youth, women, ICT, the Sudanese Professional Association and University of Khartoum Teaching Staff Initiative) and external factors (diaspora) contributed to support Sudan Uprising and potential transformation in Sudan. Our results support the third hypothesis concerning the potential opportunities and major challenges following the Sudan Uprising. One major policy implication from our findings is that the lack of peace, freedom, and justice motivated the mass street demonstrations and Sudan Uprising that called for the achievement of peace, freedom, and justice for all people in Sudan. Another major policy implication from our findings is that it is important for policymakers in Sudan to adopt sound and coherent policies to consider the potential opportunities and challenges to achieve the comprehensive economic, social, political and institutional reform, to achieve the potential transformation, fulfil the objectives of the Sudan Uprising (peace, freedom, and justice) and achieve inclusive growth and sustainable development in Sudan.
    Keywords: Economic development, social and human development, sustainable development, youth, ICT, Sudan
    JEL: O10 O11 O15 O43 O55 I3 P16
    Date: 2020–04–21
    URL: http://d.repec.org/n?u=RePEc:unm:unumer:2020017&r=all
  6. By: Younes, George Abi; Ayoubi, Charles; Ballester, Omar; Cristelli, Gabriele; de Rassenfosse, Gaetan; Foray, Dominique; Gaule, Patrick; van den Heuvel, Matthias; Webster, Beth; Zhou, Ling
    Abstract: The present document provides the take of innovation economists on the current pandemic. It is addressed to the general public and focuses on questions related to the Science, Technology, and Innovation (STI) ecosystem. It does not present new research findings. Instead, it provides a reading of current real-world developments using economic reasoning and relying on existing economic research. The first part of the report explains the root causes for a general underinvestment in Research and Development (R&D), with a particular focus on vaccines. These causes include an insufficient demand for vaccines in normal times and the very characteristics of R&D. Governments can intervene to mitigate these problems, but government intervention comes with its own set of issues. We discuss three of them, namely free riding, setting research priorities, and acting on scientific knowledge. The second part discusses several aspects related to current STI policy reactions. First, we observe a sizable shift of funds towards research on SARS-CoV-2. Aren’t we wasting money by allocating so much of it on one single scientific problem? Using the concept of the ‘elasticity of science,’ we argue that we are far from a situation where additional funding would represent a waste of money. Second, we also observe an unprecedented level of cooperation among researchers but also an intense competition to find therapeutic solutions and vaccines. We seek to make sense of this apparent antonymy, highlighting how both cooperative and competitive forces might accelerate research. Third, we focus on one policy tool, namely patents, and we discuss whether the existence of patents hampers the search for a solution. We argue that it might, but we provide ways in which patents can be beneficial. They can accelerate research (such as through patent pools) or ensure greater access to innovations (such as with compulsory licensing). Fourth, we notice that the whole STI ecosystem has been rapidly refocusing on SARS-CoV-2 in a way similar to mission-oriented R&D (MOR) programs such as the Manhattan Project in the 1940s. We highlight the fundamental differences between MOR and the present situation. Today’s response is characterized by a proliferation of a wide range of innovative solutions offered by a complex set of institutions and actors with great intellectual freedom and decentralized competition. The third part of the report assesses some potential long-term impacts of the COVID-19 pandemic. We firstly discuss its impact on R&D investment. We explain how innovation might be negatively affected by a prolonged economic downturn and highlight the crucial role of stimulus packages in confronting the recession. We also address the influence of the crisis on ICT, arguing that it has been a formidable catalyst for ICT adoption. Next, we focus on clean technologies, another major societal challenge besides the pandemic. There are strong reasons for why cleantech investment may suffer. However, the crisis also offers significant opportunities to accelerate the green transition. Finally, we focus on open science, in particular on open access and open data. The current crisis could be a catalyst for the adoption of FAIR (Findable, Accessible, Interoperable, and Reusable) Data Practices. The last part of the report offers some concluding thoughts. The STI policy response cannot be limited to the urgent need for ‘technological fixes.’ A second line of response involves the production of new knowledge to prevent outbreaks (ex-ante) or mitigate their effects (ex-post). Furthermore, the current crisis is a reminder that all branches of science matter. The pandemic has many facets, and a significant number of scientific disciplines can contribute to dealing with it. We conclude with a forward-looking note, arguing that the most substantial impact of the pandemic may lie outside of the public health realm or the science system. It offers a unique opportunity to adapt the set of rules that govern our society.
    Date: 2020–04–18
    URL: http://d.repec.org/n?u=RePEc:osf:socarx:65pgr&r=all

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