IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/9124.html
   My bibliography  Save this paper

Digital Innovation in East Asia : Do Restrictive Data Policies Matter

Author

Listed:
  • Ferracane,Martina Francesca
  • Van Der Marel,Erik Leendert

Abstract

Digital technologies encourage companies to innovate with new processes, goods, and services, which ultimately enhance their competitiveness in local and global markets. This paper analyzes whether a wide set of data restrictions are negatively associated with digital innovation of firms. The paper develops an index of data restrictions that measures the level of data policy restrictiveness for 15 East Asian countries over time. Using various firm-level data sets, the analysis shows that data restrictions inhibit firms'ability to innovate. The analysis takes into account that data restrictions are likely to have a greater impact in sectors that are more reliant on software. Regressions show that in countries that have more restrictive data policies, firms are less likely to use foreign technologies through licensing as part of their innovation process. Country-specific cases for which data are available also show that restrictive data policies are negatively associated with firms'likelihood of using intangible assets, such as patents and goodwill, for performing innovation (in Malaysia and China) and developing innovations as a result of research and development that are new to the market (in Vietnam). The paper concludes that open data policies are likely to foster digital innovation.

Suggested Citation

  • Ferracane,Martina Francesca & Van Der Marel,Erik Leendert, 2020. "Digital Innovation in East Asia : Do Restrictive Data Policies Matter," Policy Research Working Paper Series 9124, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9124
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/834121580152307973/pdf/Digital-Innovation-in-East-Asia-Do-Restrictive-Data-Policies-Matter.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Avi Goldfarb & Catherine Tucker, 2012. "Privacy and Innovation," NBER Chapters, in: Innovation Policy and the Economy, Volume 12, pages 65-89, National Bureau of Economic Research, Inc.
    2. Renaud Bourlès & Gilbert Cette & Jimmy Lopez & Jacques Mairesse & Giuseppe Nicoletti, 2013. "Do Product Market Regulations In Upstream Sectors Curb Productivity Growth? Panel Data Evidence For OECD Countries," The Review of Economics and Statistics, MIT Press, vol. 95(5), pages 1750-1768, December.
    3. Erik van der Marel & Matthias Bauer & Hosuk Lee-Makiyama & Bert Verschelde, 2016. "A methodology to estimate the costs of data regulations," International Economics, CEPII research center, issue 146, pages 12-39.
    4. Martina Francesca Ferracane & Janez Kren & Erik van der Marel, 2020. "Do data policy restrictions impact the productivity performance of firms and industries?," Review of International Economics, Wiley Blackwell, vol. 28(3), pages 676-722, August.
    5. Horrace, William C. & Oaxaca, Ronald L., 2006. "Results on the bias and inconsistency of ordinary least squares for the linear probability model," Economics Letters, Elsevier, vol. 90(3), pages 321-327, March.
    6. Dominique Guellec & Caroline Paunov, 2018. "Innovation policies in the digital age," OECD Science, Technology and Industry Policy Papers 59, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erik Marel & Martina Francesca Ferracane, 2021. "Do data policy restrictions inhibit trade in services?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(4), pages 727-776, November.
    2. Martina Francesca Ferracane & Janez Kren & Erik van der Marel, 2020. "Do data policy restrictions impact the productivity performance of firms and industries?," Review of International Economics, Wiley Blackwell, vol. 28(3), pages 676-722, August.
    3. Litina, Anastasia & Makridis, Christos A. & Tsiachtsiras, Georgios, 2021. "Do product market reforms raise innovation? Evidence from Micro-data across 12 countries," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    4. Lingduo Jiang & Shuangshuang Liu & Guofeng Zhang, 2022. "Digital trade barriers and export performance: Evidence from China," Southern Economic Journal, John Wiley & Sons, vol. 88(4), pages 1401-1430, April.
    5. Shuang Hao & Zhi Chen & Chien-Chih Wang & Che-Yu Hung, 2023. "Impact of Digital Service Trade Barriers and Cross-Border Digital Service Inputs on Economic Growth," Sustainability, MDPI, vol. 15(19), pages 1-20, October.
    6. Ariu, Andrea & Breinlich, Holger & Corcos, Gregory & Mion, Giordano, 2019. "The interconnections between services and goods trade at the firm-level," Journal of International Economics, Elsevier, vol. 116(C), pages 173-188.
    7. Sauro Mocetti & Giacomo Roma & Enrico Rubolino, 2022. "Knocking on Parents’ Doors: Regulation and Intergenerational Mobility," Journal of Human Resources, University of Wisconsin Press, vol. 57(2), pages 525-554.
    8. Okumu, Boscow & Muchapondwa, Edwin, 2017. "Determinants of Successful Collective Management of Forest Resources: Evidence from Kenyan Community Forest Associations," EfD Discussion Paper 17-11, Environment for Development, University of Gothenburg.
    9. Peter Gal & Alexander Hijzen, 2016. "The short-term impact of product market reforms: A cross-country firm-level analysis," OECD Economics Department Working Papers 1311, OECD Publishing.
    10. Kathleen J. Brown & Roos Haer & Gudrun Østby, 2023. "Local Food Price Volatility and School Dropout in Sub‐Saharan Africa," Population and Development Review, The Population Council, Inc., vol. 49(3), pages 443-468, September.
    11. Eibich, Peter & Goldzahl, Léontine, 2021. "Does retirement affect secondary preventive care use? Evidence from breast cancer screening," Economics & Human Biology, Elsevier, vol. 43(C).
    12. Miss Anna R Bordon & Mr. Christian H Ebeke & Ms. Kazuko Shirono, 2016. "When Do Structural Reforms Work? On the Role of the Business Cycle and Macroeconomic Policies," IMF Working Papers 2016/062, International Monetary Fund.
    13. Timothy F. Harris & Aaron Yelowitz, 2018. "Life Insurance Holdings And Well‐Being Of Surviving Spouses," Contemporary Economic Policy, Western Economic Association International, vol. 36(3), pages 526-538, July.
    14. Guin, Benjamin, 2017. "Culture and household saving," Working Paper Series 2069, European Central Bank.
    15. Patrick Bayer & Fernando Ferreira & Stephen L. Ross, 2018. "What Drives Racial and Ethnic Differences in High-Cost Mortgages? The Role of High-Risk Lenders," The Review of Financial Studies, Society for Financial Studies, vol. 31(1), pages 175-205.
    16. Partnership for Market Readiness, 2021. "Beyond Mitigation," World Bank Publications - Reports 35624, The World Bank Group.
    17. Sarra Ben Yahmed & Sean Dougherty, 2012. "Import Competition, Domestic Regulation and Firm-Level Productivity Growth in the OECD," OECD Economics Department Working Papers 980, OECD Publishing.
    18. Ajay Agrawal & Joshua Gans & Avi Goldfarb, 2019. "Economic Policy for Artificial Intelligence," Innovation Policy and the Economy, University of Chicago Press, vol. 19(1), pages 139-159.
    19. Ana Gouveia & Sílvia Santos & Inês Gonçalves, 2017. "The short-term impact of structural reforms on productivity growth: beyond direct effects," GEE Papers 0065, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Feb 2017.
    20. Manuel Denzer, 2019. "Estimating Causal Effects in Binary Response Models with Binary Endogenous Explanatory Variables - A Comparison of Possible Estimators," Working Papers 1916, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:9124. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.