Caroline Paunov|Valentina Rollo
Has the Internet Fostered Inclusive Innovation in the Developing World?
Organisation For Economic Co-Operation and Development|World Trade Organization
adoption internet widespread across countries making much information available thus facilitating knowledge diffusion among businesses boost innovation performance however differences firms capabilities use newly available knowledge could create new digital divide instead using 50013 firm observations covering 117 developing emerging countries 200611 period paper tests knowledge spillover effects industries adoption internet firms productivity innovation performance test heterogeneous spillover impacts groups firms commonly less engaged innovation firms different productivity levels specification regresses firm productivity innovation performance ie investment equipment ownership quality certificates patents industries use internet spillover effects identified controlling firms investment internet technology industry countryyear fixed effects well extensive firmlevel controls results show industries use internet positively affects average firms productivity investment equipment also identify modest impacts industries use internet likelihood firms obtain quality certificates patents average find returns productivity larger firms commonly engage less innovation including singleplant establishments nonexporters firms located small agglomerations however results quantile regressions show productive firms reap productivity gains internetenabled knowledge access firms productivity levels 50th percentile benefit much spillover effects industries adoption internet identified work justify public policies aimed fostering industries use internet however since show firms adequate absorptive capabilities benefit widespread internet adoption policy support also focus facilitating firms access networks strengthening capacities use