The Diffusion of Broadband-Based Applications Among Italian Small and Medium Enterprises
This paper develops an empirical model which aims at analyzing the determinants of broadband-based applications adoption among small and medium enterprises (SMEs). Focusing on a large and representative sample of Italian SMEs the econometric analysis reveals that, among other characteristics, intra-firm capabilities (i.e. firm labour productivity and IT skills level of employees) and extra-firm capabilities (i.e. the presence within the local labour market of young and skilled workforce) play a major role in explaining a firm’s willingness to adopt applications. These findings are in line with those highlighted by the skill-biased technological change (SBTC) literature and have important implications for policy makers.
KeywordsBusiness Group Local Labour Market Broadband Connection Broadband Technology Broadband Application
Financial support from Thinktel (International Think Tank on Telecommunications) is gratefully acknowledged. The authors are also grateful for useful comments and suggestions to Thinktel committee components and to participants in the 2007 ITS Conference held in Istanbul (Turkey).
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