2016
DOI: 10.1016/j.worlddev.2015.10.029
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Has the Internet Fostered Inclusive Innovation in the Developing World?

Abstract: Based on 50,013 firm observations covering 117 developing and emerging countries, this paper shows knowledge spillover effects from industries' use of the Internet boosted the average firm's productivity and innovation performance. We document that industries' "digitization" had heterogeneous impacts: results from quantile regressions indicate that the most productive firms benefited much more than others. Wider Internet adoption rates were also of larger benefit to singleplant establishments, non-exporters an… Show more

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Cited by 257 publications
(147 citation statements)
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References 83 publications
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“…The findings indicate that farmers who adopted the system became more efficient and received better prices relative to a control group. Further, Paunov and Rollo () find that internet adoption within a sector has positive impacts on individual firms’ labour productivity and innovation capacity, regardless of adoption. Interestingly, these spillover impacts are larger for smaller firms and for firms located in smaller agglomerations, suggesting the presence of catch‐up effects related to internet diffusion.…”
Section: Opening the Internet Black Boxmentioning
confidence: 99%
“…The findings indicate that farmers who adopted the system became more efficient and received better prices relative to a control group. Further, Paunov and Rollo () find that internet adoption within a sector has positive impacts on individual firms’ labour productivity and innovation capacity, regardless of adoption. Interestingly, these spillover impacts are larger for smaller firms and for firms located in smaller agglomerations, suggesting the presence of catch‐up effects related to internet diffusion.…”
Section: Opening the Internet Black Boxmentioning
confidence: 99%
“…There is, however, a quite extensive literature on the economic impact of mobile phones for small and micro enterprises in developing and emerging countries (e.g. Jensen 2007, Muto and Yamano 2009, Aker and Mbiti 2010, Tadesse and Bahiigwa 2015and Paunov and Rollo 2016. In general, this literature suggests that the use of mobile phones improves market outcomes.…”
Section: Related Literaturementioning
confidence: 99%
“…Internet access is perhaps one of the most significant indicators of human and socioeconomic development. It fosters productivity and innovation (Avgerou 2008;Paunov and Rollo 2016), social interactions (Liang and Guo 2015) and reduces communication and search costs (Beard et al 2012). Yet, there is a digital divide in the level of internet access among developing countries, especially those in sub-Saharan Africa (SSA) compared to the rest of the world.…”
Section: Introductionmentioning
confidence: 99%