More bits more bucks? : Measuring the impact of broadband internet on firm performance


Bertschek, Irene ; Cerquera, Daniel ; Klein, Gordon J.


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URL:: http://ub-madoc.bib.uni-mannheim.de/3183
URN: urn:nbn:de:bsz:180-madoc-31834
Document Type: Working paper
Year of publication: 2011
Publication language: English
Institution: Sonstige Einrichtungen > Zentrum für Europ. Wirtschaftsforschung (ZEW)
MADOC publication series: Veröffentlichungen des ZEW (Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: D22 L23 O31
Subject headings (SWD): Deutschland , Breitbandkommunikation , Computerunterstütztes Verfahren , Innovation , Unternehmensentwicklung , Arbeitsproduktivität
Keywords (English): labour productivity , innovation , broadband Internet
Abstract: The paper provides empirical evidence for the causal impact of broadband Internet on the economic performance of German firms. Performance is measured in terms of labour productivity and realised process and product innovations. The analysis refers to the early phase of DSL expansion in Germany from 2001 to 2003, when roughly 60 percent of the German firms already used broadband Internet. Identification relies on instrumental variable estimation taking advantage of information on the availability of DSL broadband at the postal code level. The results show that broadband Internet has no impact on firms' labour productivity whereas it exhibits a positive and significant impact on their innovation activity.
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