This paper investigates the effects of access to high-speed internet on innovation and entrepreneurship in Africa. The identification strategy exploits the staggered arrival of submarine internet cables to the coast of Africa and the subsequent rollout of terrestrial fiber network across the continent. The findings show a positive effect of access to high-speed internet on innovation at the firm level, with availability of digital skills within the firm playing a key role in the internet-innovation nexus. The paper also finds evidence of internet-induced entrepreneurship: the probability that a household establishes a non-farm business increases when connected to the internet. However, the increase in entrepreneurial activities is largely concentrated in the service sector.
Detalhes
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Autor
Houngbonon,Georges Vivien, Mensah,Justice Tei, Traore,Nouhoum-000531164
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Data do documento
2022/02/23
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TIpo de documento
Documento de trabalho sobre pesquisa de políticas
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No. do relatório
WPS9945
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Nº do volume
1
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Total Volume(s)
1
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País
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Região
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Data de divulgação
2022/02/23
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Disclosure Status
Disclosed
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Nome do documento
The Impact of Internet Access on Innovation and Entrepreneurship in Africa
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Palavras-chave
process innovation; product innovation; Innovation and Entrepreneurship; Small and Medium Scale Enterprise; submarine cable; information and communication technology; Democratic Republic of Congo; access to internet; backbone network; rate of innovation; entrepreneurial activity; broadband internet; innovation activity; cost of entry; barrier to entry; labor market outcome; long run growth; intensity of competition; impact of competition; time t; parameter of interest; panel data; measure of use; multilateral development bank; rates of entrepreneurship; average treatment effect; Access to Electricity; high speed internet; method of production; labor force participation; skill-biased technology; living standard measurement; digitization of business; cost of transportation; cost of production; development of e-commerce; effects of competition; business plan competition; access to infrastructure; cost of transit; credit constraint; positive impact; entry cost; landlocked country; digital skills; cost advantage; e-commerce platform; spatial lag; online platform; transportation cost; social media; household welfare; broadband infrastructure; temporal variation; coastal countries; manufacturing sector; new market; instrumental variable; entrepreneurship rates; point estimate; baseline analysis; market power; research design; standard error; indicator variable; causal impact; high share; household enterprise; bandwidth capacity; theoretical model; manufacturing enterprise; new entrant; penetration rate; traditional market; increased access
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