nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2024‒07‒22
three papers chosen by
Marek Giebel, Universität Dortmund


  1. Are we yet sick of new technologies? The unequal health effects of digitalization By Arntz, Melanie; Findeisen, Sebastian; Maurer, Stephan; Schlenker, Oliver
  2. The scale-up state: Singapore’s industrial policy for the digital economy By Lee, Neil; Ni, Metta; Boey, Augustin
  3. EU-funded investment in Artificial Intelligence and regional specialization By Anabela Marques Santos; Francesco Molica; Carlos Torrecilla Salinas

  1. By: Arntz, Melanie; Findeisen, Sebastian; Maurer, Stephan; Schlenker, Oliver
    Abstract: This study quantifies the relationship between workplace digitalization, i.e., the increasing use of frontier technologies, and workers' health outcomes using novel and representative German linked employer-employee data. Based on changes in individual-level use of technologies between 2011 and 2019, we find that digitalization induces similar shifts into more complex and service-oriented tasks across all workers, but exacerbates health inequality between cognitive and manual workers. Unlike more mature, computer-based technologies, frontier technologies of the recent technology wave substantially lower manual workers' subjective health and increase sick leave, while leaving cognitive workers unaffected. We provide evidence that the effects are mitigated in firms that provide training and assistance in the adjustment process for workers.
    Keywords: health, inequality, technology, machines, automation, tasks, capital-labor substitution
    JEL: I14 J21 J23 J24 O33
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:zewdip:300006&r=
  2. By: Lee, Neil; Ni, Metta; Boey, Augustin
    Abstract: The Singaporean state has played a crucial role in the country’s economic development. This led to concerns that a state-steered economy would be unable to develop fast-changing, disruptive sectors that are reliant on individual entrepreneurship, such as digital technology. Yet Singapore has become a world leader in the scaling of digital technology firms. In this paper, we consider how this happened. We show that advances in ICT opened a window of locational opportunity in digital tech, which was spotted by Singaporean policymakers open to experimentation. A distinctive ‘Singapore model’ developed to take advantage of this opportunity, exploiting Singapore’s geographical position, open economy, and business environment but combining this with active state intervention. To address coordination problems in the creation of an entrepreneurial ecosystem, Singaporean policymakers worked through a process we term ‘network coordination’ across the whole of government. While overall rates of entrepreneurship remain low, the country has been successful at scaling firms in the digital technology sector. These primarily focused on consumer applications and non-Singaporean markets, but there has been little development in frontier ‘deep tech’.
    Keywords: digital technology; Singapore; developmental states; industrial policy; entrepreneurial ecosystems
    JEL: R14 J01 L81
    Date: 2024–06–14
    URL: https://d.repec.org/n?u=RePEc:ehl:lserod:123885&r=
  3. By: Anabela Marques Santos; Francesco Molica; Carlos Torrecilla Salinas (European Commission, Joint Research Centre, Sevilla, Spain; European Commission, Joint Research Centre, Brussels, Belgium; European Commission, Joint Research Centre, Sevilla, Spain)
    Abstract: Artificial Intelligence (AI) is seen as a disruptive and transformative technology with the potential to impact on all societal aspects, but particularly on competitiveness and growth. While its development and use has grown exponentially over the last decade, its uptake between and within countries is very heterogeneous. The paper assesses the geographical distribution at NUTS2-level of EU-funded investments related to AI during the programming period 2014-2020. It also examines the relationship between this specialization pattern and regional characteristics using a spatial autoregressive model. Such an analysis provides a first look at the geography of public investment in AI in Europe, which has never been done before. Results show that in the period 2014-2020, around 8 billion EUR of EU funds were targeted for AI investments in the European regions. More developed regions have a higher specialization in AI EU-funded investments. This specialization also generates spillover effects that enhance similar specialization patterns in neighboring regions. AI-related investments are more concentrated in regions with a higher concentration of ICT activities and that are more innovative, highlighting the importance of agglomeration effects. Regions that have selected AI as an innovation priority for their Smart Specialization Strategies are also more likely to have a higher funding specialization in AI. Such findings are very relevant for policymakers as they show that AI-related investments are already highly spatially concentrated. This highlights the importance for less-developed regions to keep accessing to sufficient amounts of pre-allocated cohesion funds and to devote them for AI-related opportunities in the future.
    Keywords: Artificial intelligence; Public subsidy; Territorial specialization; Europe
    JEL: O31 R58 R12 O52
    Date: 2024–07
    URL: https://d.repec.org/n?u=RePEc:mde:wpaper:181&r=

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