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Cloud technologies, firm growth and industry concentration

Author

Listed:
  • Caldarola, Bernardo

    (Mt Economic Research Inst on Innov/Techn, RS: GSBE other - not theme-related research)

  • Fontanelli, Luca

Abstract

Recent empirical evidence finds positive associations between digitalisation and industry concentration. However, ICT may not be all alike. We investigate the effect of the purchase of cloud services on the long run size growth rate of French firms. Our findings suggest that cloud services positively impact firm growth rates, with smaller firms experiencing more significant benefits compared to larger firms. This evidence suggests that the diffusion of cloud technologies may help mitigate concentration in the era of the digital transition by favouring the digitalisation and growth of smaller firms, especially when the cloud services provided are more advanced.

Suggested Citation

  • Caldarola, Bernardo & Fontanelli, Luca, 2024. "Cloud technologies, firm growth and industry concentration," MERIT Working Papers 2024-026, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2024026
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    File URL: https://cris.maastrichtuniversity.nl/ws/files/220401427/wp2024-026.pdf
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    More about this item

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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