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Experimenting in the cloud: The digital divide's impact on innovation

Author

Listed:
  • Han, Luyi
  • Wojan, Timothy R.
  • Goetz, Stephan J.

Abstract

This paper builds on a recent National Science Foundation working paper that identified a strong association between cloud use and various types of innovation but did not consider whether 1) cloud adoption is a reliable indicator of the innovation orientation of a firm, or 2) cloud adoption enables various types of innovation. We estimate propensity score matching and endogenous treatment effect models to control for innovation orientation, producing evidence to test the second explanation. Findings support an enabling effect of the cloud on innovation providing concrete evidence of the adverse impact of the digital divide.

Suggested Citation

  • Han, Luyi & Wojan, Timothy R. & Goetz, Stephan J., 2023. "Experimenting in the cloud: The digital divide's impact on innovation," Telecommunications Policy, Elsevier, vol. 47(7).
    • Handle: RePEc:eee:telpol:v:47:y:2023:i:7:s0308596123000897
    DOI: 10.1016/j.telpol.2023.102578
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    References listed on IDEAS

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    Cited by:

    1. Han, Luyi & Wojan, Timothy R. & Tian, Zheng & Goetz, Stephan J., 2024. "How export performance is mediated by innovation, owner characteristics, and location," Economics Letters, Elsevier, vol. 237(C).
    2. Anil Rupasingha & John Pender & Ryan Williams, 2024. "Broadband and rural development: Impacts of the U.S. Department of Agriculture Broadband Initiatives Program on saving and creating jobs," Economic Inquiry, Western Economic Association International, vol. 62(2), pages 698-721, April.

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