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Telecommunications technologies and regional development: theoretical considerations and empirical evidence

Author

Listed:
  • Peter Nijkamp

    (Department of Economics, Free University, P.O. Box 7161, 1007 MC Amsterdam, The Netherlands)

  • Roberta Capello

    (Department of Economics, Politecnico of Milan, Piazza Leonardo da Vinci 32, I-20133 Milan, Italy)

Abstract

The paper provides an analysis of network externalities in the telecommunications sector and their effects on corporate and regional performance. It can essentially be regarded as part of the general theoretical reflection on the role of telecommunications in economic development, by emphasising the importance of telecommunications for future economic growth. However, the advantages derived from these technologies stem not only from the technological changes taking place in the sector, but also from their nature as interrelated technologies. This stems from the fact that when a new subscriber joins the network, the marginal costs of his entry are lower than the marginal benefits he creates for people (firms) already networked. This difference between marginal costs and benefits (in favour of the benefits) inevitably reflects on industrial performance and - via multiplicative effects - on regional performance. The paper presents an empirical part where an effort is made to measure telecommunications network externalities. Regional differences in the exploitation of network externalities emerge between firms located in the north and in the south of Italy.

Suggested Citation

  • Peter Nijkamp & Roberta Capello, 1996. "Telecommunications technologies and regional development: theoretical considerations and empirical evidence," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 30(1), pages 7-30.
    • Handle: RePEc:spr:anresc:v:30:y:1996:i:1:p:7-30
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    Citations

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    Cited by:

    1. Daoqin TONG & Sandy DALL’ERBA, 2008. "Spatial Disparities In The Chinese Ict Sector: A Regional Analysis," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 28, pages 111-129.
    2. Gómez-Barroso, José Luis & Marbán-Flores, Raquel, 2020. "Telecommunications and economic development – The 20th century: The building of an evidence base," Telecommunications Policy, Elsevier, vol. 44(2).
    3. David Newlands & Melanie Ward, 1998. "Telecommunications infrastructures and policies as factors in regional competitive advantage and disadvantage," ERSA conference papers ersa98p347, European Regional Science Association.
    4. Antje Burmeister & Faridah Djellal, 2004. "L'impact des technologies de l'information sur l'organisation spatiale des activités de services : le cas du transport routier de marchandises et des services intensifs en connaissance," Innovations, De Boeck Université, vol. 19(1), pages 53-73.
    5. Juan Carlos Rodríguez-Cohard & Encarnación Moral-Pajares, 2005. "ICT, global markets and small firms in less-developed regions in Europe - the case of mature sectors in a Spanish Province," ERSA conference papers ersa05p655, European Regional Science Association.
    6. Danielle GALLIANO (LEREPS-GRES & INRA-ETIC ) & Pascale ROUX (ADIS, Université Paris Sud ), 2005. "The evolution of the spatial digital divide: From internet adoption to internet use by french industrial firms," Cahiers du GRES (2002-2009) 2005-25, Groupement de Recherches Economiques et Sociales.
    7. Rodriguez Cohard, Juan Carlos & Bernal Jurado, Enrique, 2002. "E-commerce and territorial development in the Objective-1 spanish regions," ERSA conference papers ersa02p326, European Regional Science Association.
    8. Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran S. & Hall, John H. & Bennett, Sara E., 2021. "Sustainable economic development in India: The dynamics between financial inclusion, ICT development, and economic growth," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    9. Danielle Galliano & Pascale Roux & Maryline Filippi, 2001. "Organisational and Spatial Determinants of ICT Adoption: The Case of French Industrial Firms," Environment and Planning A, , vol. 33(9), pages 1643-1663, September.
    10. Martina Aronica & Rubinia Celeste Bonfanti & Davide Piacentino, 2021. "Social media adoption in Italian firms. Opportunities and challenges for lagging regions," Papers in Regional Science, Wiley Blackwell, vol. 100(4), pages 959-978, August.
    11. Maureen Kilkenny, 1995. "Transport Costs and Rural Development," Center for Agricultural and Rural Development (CARD) Publications 95-wp133, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    12. Danielle Galliano & Pascale Roux, 2008. "Organisational motives and spatial effects in Internet adoption and intensity of use: evidence from French industrial firms," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 425-448, June.
    13. Fulvio Castellacci & Davide Consoli & Artur Santoalha, 2018. "Technological Diversification in European Regions: The Role of E-skills," Working Papers on Innovation Studies 20181009, Centre for Technology, Innovation and Culture, University of Oslo.
    14. Rudra P. Pradhan & Mak B. Arvin & John H. Hall & Sara E. Bennett, 2018. "Mobile telephony, economic growth, financial development, foreign direct investment, and imports of ICT goods: the case of the G-20 countries," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(2), pages 279-310, June.
    15. Dohse, Dirk & Lim, Cheng Yee, 2016. "Macro-geographic location and internet adoption in poor countries: What is behind the persistent digital gap?," Kiel Working Papers 2067, Kiel Institute for the World Economy (IfW Kiel).
    16. Juan Eduardo Chica & Carlos Marmolejo, 2016. "Knowledge economy and metropolitan growth: Barcelona and Helsinki metropolitan areas as case studies," International Journal of Knowledge-Based Development, Inderscience Enterprises Ltd, vol. 7(1), pages 22-42.
    17. Harminder Battu & John Finch, 1998. "Integrating knowledge effects into university impact studies. A case study of Aberdeen University," Working Papers 98-08, Department of Economics, University of Aberdeen.
    18. Kum-Soon Lim & Deok-Joo Lee & Hyung-Sik Oh, 2008. "Strategic investment planning in regional deployment of telecommunication services: a real options approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 42(2), pages 391-411, June.

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