Empirical study of broadband adoption using data from the 2009 Residential Energy Consumption Survey

Using 2009 data from the U.S. Energy Information Administration, a study of factors that influence broadband adoption is conducted. The data set includes previously studied demographic factors, as well as records associated with the household’s use of computers, television, pay television services, and broadband. Analysis of the data indicate that, when controlling for a number of demographic factors, the purchase of television services is positively correlated with broadband adoption, with consumers who purchase either cable or satellite television service adopting broadband at a higher rate than those who utilize over-the-air television services. The results suggest that consumers who prefer over-the-air television services may face a more substantial hurdle in broadband adoption, one that might be lowered through the availability of affordable stand-alone broadband services.     

The impact of regulation and competition on the adoption of fiber-based broadband services: recent evidence from the European union member states

Fiber deployment of next-generation high-speed broadband networks is considered to be a decisive development for any information-based society, yet investment activities and especially the adoption of fiber-based broadband services take place only very gradually in most countries. This work employs static and dynamic model specifications and identifies the most important determinants of the adoption of fiber-based broadband services with recent panel data from the European Union member states for the years from 2004 to 2012. The results show that the more effective previous broadband access regulation is, the more negative the impact on adoption, while competitive pressure from mobile networks affects adoption in a non-linear manner. Finally, we also find evidence for substantial network effects underlying the adoption process.     

Fiber in the backbone! The impact of broadband adoption on firm growth in network markets

This article examined the relationship between the adoption of technology, via the deployment of broadband, on revenue growth, which is an important measure of financial performance, of the deploying firms using panel data for all of the major local exchange carriers in the US telecommunications industry from 1988 to 2001. The sector is an important network market context where the implications of deployment have substantial salience. The results show a positive relationship between broadband deployment and carriers’ revenue growth. This result implies that encouraging the adoption and deployment of broadband technologies in addition to the benefits of the consumers and firms at the receiving end of the new technology create the potential for better financial performance for the deploying firms. These results also imply that steps that can be taken to provide incentives that will hasten the further deployment of broadband will result in gains in financial performance within the sector.     

Effects of economic conditions and policy interventions on OECD broadband adoption

The positive effects of broadband networks and services on productivity and economic growth are well established. Looking at broadband as an engine of economic prosperity, the OECD and its member states are seeking to foster its widespread adoption. However, which public policies best promote the adoption of broadband remains controversial. This article contributes in two ways to this discussion. It offers a comprehensive discussion of the factors that influence broadband adoption and uses an econometric approach that is well-suited to overcome the challenges of modelling broadband adoption. This framework allows drawing more robust and nuanced policy recommendations.     

An empirical study of broadband diffusion in rural America

In this study we examine the factors that will encourage broadband adoption in rural areas. Using data on rural Incumbent Local Exchange Carriers (ILECs) we find that low density, high cost markets decrease the ability of the telecommunication service providers to offer DSL, but other factors also play a role. Demand for broadband has become more inelastic over time, marginal increases in speed alone have lost their appeal to customers, and the inclusion of video in a broadband package improves broadband take rates and willingness to pay. Small income elasticities reinforce our finding that broadband has become a necessity. Our analysis shows that price subsidies may not be effective in providing a large boost in demand, but policies that lower the cost of providing video may stimulate broadband adoption indirectly if the savings lead to more affordable bundled communications multimedia packages that users want.     

Next generation entrepreneur: innovation strategy through Web 2.0 technologies in SMEs

This essay studies the diffusion/adoption of Web 2.0 technologies in small and medium sized enterprises (SMEs)’ innovation strategies and particularly in research, development, design and other innovation activities. It looks at the effects of these technologies on the evolution and the dynamics of firm's innovation capabilities and the implications of entrepreneurial turnover on the adoption of said technologies. The study is based on original fieldwork with some 130 SMEs. The author finds that a consistent share of SMEs is actively trying to fill the knowledge gap and integrate Web 2.0 technologies in their innovation strategies. SMEs are managing this integration by progressively adjusting their behaviour in reaction to the opportunities offered by the technology and balancing the dependence of the business from the web. Barriers to the adoption of such technologies are also discussed.     

Measuring (in a time of crisis) the impact of broadband connections on economic growth: an OECD panel analysis

Technological innovation has always been considered a major stimulus for economic growth. High-speed internet access via broadband infrastructure has undergone rapid development since the end of the 1990s, thanks to the deployment of both fixed and mobile technologies. The present study investigates the impact of fixed broadband diffusion as a technological determinant of economic growth on the basis of a panel of 23 OECD countries over 15 years (1996–2010). The time horizon chosen is suitable for verification of the causal effect on growth of the transition from traditional copper to partially fibre networks. Through implementation of a dynamic panel by using the generalized method of moments (GMM) combined with an instrumental variable (IV) two-stage approach, we found a positive correlation between broadband diffusion and economic growth, even after controlling for countries initial endowment of information and communication technologies (ICT) and for the years of economic crisis. Our main finding provides evidence, through a continuous time interpretation of our estimations, of a quantitatively relevant relationship between broadband diffusion and economic dynamics in the short, medium and long runs. Our findings may be useful to policy makers in that they permit forecasting of the benefits of further transition from broadband to ultra-wide broadband networks.     

ICT services and small businesses’ productivity gains: An analysis of the adoption of broadband Internet technology

We analyse the impact of the adoption of broadband Internet technology on the productivity performance of small and medium enterprises (SMEs). We distinguish access to the broadband infrastructure from the adoption of complementary services, i.e., different types of broadband software applications. The empirical analysis considers a sample of 799 firms observed from 1998 to 2004 that are representative of the population of Italian SMEs. Our econometric estimates indicate that the impact of the adoption by SMEs of basic broadband applications is negligible (or even negative). Conversely, SMEs are found to benefit from adopting selected advanced broadband applications depending on several contingent factors: (i) their industry of operations (services vs. manufacturing); (ii) the relevance of the specific broadband software applications for SMEs’ industry of operation; and (iii) the undertaking of complementary strategic and organisational changes.     

Competition enhancing regulation and diffusion of innovation: the case of broadband networks

Regulating former telecommunications monopolies has often been legally and technically complex. Among other options, incumbent operators were mandated to share, sell or split their infrastructure thus encouraging market entry. Given the importance of broadband technologies, competitive access has become a policy priority. We use data from 167 broadband markets over a period of 11 years. Firm and intra-platform competition on the incumbent’s legacy network (Digital Subscriber Line) accelerate adoption of broadband, whereas competition over different access technologies does not. The duration of the different regulatory effects shows that simpler network changes have a long-lasting yet delayed effect compared to technically demanding ones.     

ICT adoption and income diversification among rural households in China

ABSTRACT

Although the determinants of income diversification have been widely examined in the literature, little is known about whether and how information and communication technology (ICT) adoption affects household income diversification. To fill in this gap, this paper examines the impact of ICT adoption on income diversification among rural households in China, utilizing open-access data collected through the China Labour-force Dynamics Survey project. We employ a two-stage treatment effects model to address the potential selection bias issue associated with ICT adoption. The empirical results show that ICT adoption exerts a positive and statistically significant impact on income diversification. Further analyses reveal that ICT adoption is more beneficial to low-income rural households and those residing in eastern and central parts of China when it plays a role in diversifying rural income. Our findings suggest that improving rural education and infrastructure such as roads and broadband facilities can help enhance ICT adoption among rural households, which subsequently increases income diversification.     

Do social exclusion and remoteness explain the digital divide in Australia? Evidence from a panel data estimation approach

ABSTRACT

Despite rapid digital development in the past two decades, the remote parts of Australia still experience disadvantages with the adoption and diffusion of digital technology. As the adoption of information and communication technology continues to increase at a significant rate, investigating the underlying factors of the digital divide in general and also in the context of social exclusion in Australia is pertinent. The current study fills the gap in the existing body of knowledge by exploring the effect of socio-demographic factors and remoteness on the digital divide landscape with a country-specific focus on Australia. Using state-wide longitudinal data covering the 1998–2015 period within the panel data estimation framework, this study finds that digital divide is significantly associated with socio-demographic factors and remoteness in Australia. Moreover, the findings affirm that in addition to telecommunication infrastructure development, policymakers should also underscore socio-demographic factors in shaping digital inclusion strategies.     

Exploring additional determinants of fixed broadband adoption: policy implications for narrowing the broadband demand gap

Using data from the survey ‘Aspects of daily life’ conducted on Italian individuals in 2014 by the Italian Institute of Statistics, we propose new evidence on the factors that encourage the adoption of fixed broadband, a topic relevant for the reduction of the so-called broadband demand gap. We estimate a probit model through the two-step Heckman procedure for the selection bias, and find that, besides the already studied socio-demographic determinants, Internet-capable devices other than personal computers, as well as recreational (essentially video contents) and cloud-related uses of the Internet, have a relevant positive role. Policies aimed at fostering the diffusion of smart homes and more generally of the Internet of things at the residential level might be very effective in favouring fixed broadband adoption, provided that the network be neutral, not discriminating between data based on their contents and/or the destination device, and that possible foreclosing behaviours in the access to (premium) contents be properly and promptly addressed.     

Evaluating the impact of the American Recovery and Reinvestment Act’s BTOP on broadband adoption

The American Recovery and Reinvestment Act’s Broadband Technology Opportunities Program (BTOP) spent $4.7 billion during 2009–2013 to, inter alia, increase broadband adoption in underserved communities. We characterize the BTOP grants and examine the impact of the awards on broadband adoption. Econometric specifications controlling for award endogeneity related to observed and unobserved county-level factors find that spending is apparently associated with increased broadband adoption. Further investigation, however, reveals that the impacts of spending are nonlinear and even nonmonotonic over the range of county-level BTOP spending in the data. Controlling for trends to reduce the potential for spurious correlation between spending and outcomes removes most of the significance of the results. We conclude with three lessons for policymakers derived from the uncertain outcomes of BTOP spending found in our exploration.     

A coevolutionary framework for analysing a transition to a sustainable low carbon economy

This paper proposes a coevolutionary framework for analysing a transition to a sustainable low-carbon economy, based on the coevolution of ecosystems, technologies, institutions, business strategies and user practices, within a multi-level micro-meso-macro perspective. This builds on and develops previous coevolutionary analyses of long-term technological and industrial change, and recent renewed interest within ecological economics on coevolutionary approaches. Previous work has analysed how the coevolution of technologies and institutions has led to the lock-in of current high-carbon energy systems; and how the coevolution of physical and social technologies and business strategies has brought significant material and welfare benefits to the minority of the world's population living in industrialised countries. The coevolutionary framework proposed here may be used to undertake: (1) detailed empirical analyses at a micro-meso level of the challenges relating to the innovation and adoption of particularly low-carbon technologies; (2) as a framework for analysing the multi-level interaction of social and technological elements within potential transition pathways to a low carbon energy system; (3) to assess the implications for economic growth and prosperity of a transition to a low carbon economy; and (4) to assist in the development of more formal, multi-level evolutionary economic models.     

The role of new ICTs in the sustainable development of industrial cluster： a case study of Yangxunqiao textile cluster

The wide application of new information and communication technologies （ICTs） has been argued to be critical in local economic development, while the application of new ICTs will affect the development of industrial cluster, especially those small and medium-sized enterprises （SMEs）. This paper examines Yangxunqiao textile cluster located in Zhejiang Province as a case study to focus on the role of ICTs in the sustainable development. We argue ICTs application in firms boost flexible and customized production approach, improve e-commerce market channel and raise supply chain management. We also pay special attention to the spatial implication of ICTs adoption in industrial cluster, and suggest that application of ICTs tend to lead to further clustering of SMEs in the location with mature production chain. Our analysis shows that new ICTs are a facilitator in the sustainable development of the industrial cluster.     

An introduction to rural and agricultural development in the digital age

This special issue contributes to the development economics literature by highlighting the role of information communication and technologies (ICTs) in supporting rural and agricultural development. It is comprised of nine papers. Key findings from this special issue include: (1) internet use increases rural consumption diversity and agricultural productivity; (2) smartphone use empowers rural women in household decision-making and off-farm work participation; (3) smartphone-based agricultural extension services boost rural income growth; (4) a lack of ICT infrastructure and inadequate skills to use digital technologies are two key factors that lead to digital poverty traps for smallholder rural farmers; (5) ICT adoption increases the probability of rural households' access to credit and empowers rural women and farm households in relatively less developed regions to access credit; (6) digital financial inclusion reduces farmers' vulnerability to poverty; and (7) e-commerce adoption increases both sales prices and marketing costs, but the magnitude of increasing the former is higher than the magnitude of increasing the latter, which finally contributes to a higher gross return. This special issue also proposes practical instruments and implications for advancing the application of ICTs in rural areas to accelerate rural and agricultural development in the digital age.     

Assessment of technological appropriateness: The case of Indonesian rural development

It is commonly recognized at the present that technological appropriateness is not an intrinsic quality of any technology, but it derived from the surroundings (technological as well as sociocultural, politicolegal, economic, and environmental) in which it is to be utilized and the specific purpose of its application. On this basis, this paper presents two case studies for the selection of appropriate technologies for rural development in Indonesia. The first case deals with the problem of identifying a “set of appropriate technologies” to be promoted for accelerated rural development. The second case deals with the problem of selecting the “most appropriate one” among available technologies of one kind. The assessment exercises are carried out using existing methodologies and inputs (such as national priorities, assessment factors, and decision weights) from Indonesian nationals. It is shown that the analysis can provide useful guidelines for science and technology policy planning in developing countries.     

Income Inequality and Technological Adoption

We relate technological adoption (of different technologies) with income inequality. In the process, we discover that some technologies, such as aviation, cell phones, electric production, internet, telephone, and TV, are skill-complementary in raising inequality. We construct standardized indexes of skill-complementary technological adoption for modern information and communication technologies (ICT), older ICT, production and transport technologies. We find strong evidence that older ICT and transport technologies (and less frequently modern ICT) tend to increase inequality. Additionally, we discover that results are much stronger in rich countries than in poor ones. Our results are quite robust to a series of changes in specifications, estimators, samples, and measurement of technology adoption. These results may bring insights into the design of incentive schemes for technology adoption.     

Embedded industrial production systems: Lessons from waste management in zinc production

To meet the sustainability challenge private companies must implement corporate strategies and adopt novel technologies. The technical and social embeddedness of industrial production systems, however, complicates these systems' transition towards sustainability. In the paper, mechanisms and conditions are reported for the development and implementation of waste management options in embedded industrial production systems. The focus is on the Dutch zinc production industry, which had to deal with a major waste problem; the generation of jarosite. The industry's options were to increase the jarosite waste storage capacity, to develop a jarosite treatment process or to switch to a zinc-ore of low-iron content whereby no jarosite waste would be generated anymore. Required conditions appeared to be a combination of technological capability and technical embedding and favourable economics. Case study research, however, revealed that adequate stakeholder management is crucial to address social pressure exerted and to obtain external acceptance for any transition strategy. Whilst appropriate, internal technological capabilities are important, effective interactions with and enrolment of various firm-external actors are crucial. In the case of zinc, access to the heterogeneous external actor network was critical for the development of the jarosite treatment solution direction. In conclusion, both the technical, organizational and social embedding of new technologies are crucial for successful implementation.     

Broadband adoption and content consumption

We explore how broadband access drives changes in the quantity and diversity of consumption of online content by using panel data that describes household Internet usage before and after broadband adoption. Our data suggests that on average, broadband adoption increases usage by over 1300 min per month. We also find that information consumption becomes more evenly distributed within the population, driven in part by post-adoption usage gains of almost 1800 min per month among individuals who were in the lowest usage quintile before adopting broadband. After adopting broadband, this pre-adoption lowest-usage quintile consumes content in greater quantities than users in neighboring quintiles, passing both the second and third quintiles in terms of absolute usage. This suggests that these users may have had strong preferences for high-bandwidth content that was too costly to consume in a narrowband environment. We also show that broadband adoption increases the variety of content that users consume although many of these gains appear to be associated with an increase in the variety of sites visited within previously visited content categories rather than an expansion in the types of content consumed.