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Digitalisation, Institutions and Governance, and Diffusion: Mechanisms and Evidence

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  • Baccianti, Claudio
  • Labhard, Vincent
  • Lehtimäki, Jonne

Abstract

Digitalisation can be described as a sequence of technology and supply shocks which affect the economy through employment and labour markets, productivity and output, and competition and market structure. This paper focuses on how digitalisation - the process of diffusion of digital technologies - is affected by institutions and governance. It discusses a number of theoretical mechanisms and empirical evidence for different sets of European and other countries. The results indicate that a higher quality of institutions is usually associated with both a greater speed of diffusion and a greater spread of digital technologies. The results also suggest that there are large, policy-relevant differences in the diffusion process depending on the level of development as well as the state of technological change of a country. JEL Classification: E02, O11, O31, O33, O57

Suggested Citation

  • Baccianti, Claudio & Labhard, Vincent & Lehtimäki, Jonne, 2022. "Digitalisation, Institutions and Governance, and Diffusion: Mechanisms and Evidence," Working Paper Series 2675, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20222675
    Note: 360650
    as

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    More about this item

    Keywords

    adoption; economy; estimates; panel; technology;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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