Abstract
This paper develops an empirical model which aims at analyzing the determinants of broadband-based applications adoption among small and medium enterprises (SMEs). Focusing on a large and representative sample of Italian SMEs the econometric analysis reveals that, among other characteristics, intra-firm capabilities (i.e. firm labour productivity and IT skills level of employees) and extra-firm capabilities (i.e. the presence within the local labour market of young and skilled workforce) play a major role in explaining a firm’s willingness to adopt applications. These findings are in line with those highlighted by the skill-biased technological change (SBTC) literature and have important implications for policy makers.
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Notes
- 1.
1 A complete description of collected information will be presented in Table 1.
- 2.
2 For a similar technique used in a different context see Delmar and Shane (2006).
- 3.
3 The sample covers a broad range of industries, with different characteristics as to processes of production, input structures and producer–customer interfaces. In turn, these factors are likely to play an important role in adoption of broadband applications, as they influence the benefits firms can derive from them. Nonetheless, the analysis of this issue goes beyond the scope of the paper and we leave it for future research.
- 4.
4 If we look at the results of the selection equation (Table 3) the coefficient of the variable South is positive but statistically insignificant, while the variable Telecommunication Network is found to negatively affect (albeit at 90%) the probability of SMEs to adopt broadband connection.
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Acknowledgments
Financial support from Thinktel (International Think Tank on Telecommunications) is gratefully acknowledged. The authors are also grateful for useful comments and suggestions to Thinktel committee components and to participants in the 2007 ITS Conference held in Istanbul (Turkey).
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Colombo, M.G., Grilli, L. (2009). The Diffusion of Broadband-Based Applications Among Italian Small and Medium Enterprises. In: Curwen, P., Haucap, J., Preissl, B. (eds) Telecommunication Markets. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-7908-2082-9_10
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