The impact of broadband speed on innovation: City-level evidence from China
Previous studies have associated broadband with innovation, but most of them have focused on broadband access or broadband penetration rate rather than broadband speed. However, with the increase in the global broadband penetration rate, network speed is becoming a more important aspect of broadband...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-01-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844022039809 |
| _version_ | 1811173427957989376 |
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| author | Jialing Chen Jiancheng Wang |
| author_facet | Jialing Chen Jiancheng Wang |
| author_sort | Jialing Chen |
| collection | DOAJ |
| description | Previous studies have associated broadband with innovation, but most of them have focused on broadband access or broadband penetration rate rather than broadband speed. However, with the increase in the global broadband penetration rate, network speed is becoming a more important aspect of broadband development. Using a fixed effect model based on panel data from 274 cities in China from 2016 to 2018, we explore the impact of broadband speed on innovation and further validate the relationship by instrumental variable estimation and a series of robustness tests. The main findings are as follows: First, broadband speed significantly promotes patenting, and this effect is greater than the increase in broadband penetration rate. Second, the impact of broadband speed on promoting innovation is more substantial in cities with higher Internet penetration, GDP per capita, science and technology investment, and foreign direct investment. Third, broadband speed could promote innovation by facilitating patenting cooperation among firms. Fourth, we find no evidence of a diminishing marginal effect of broadband speed in this setting. This study has significant practical implications for emerging countries to encourage innovation by increasing broadband speed. |
| first_indexed | 2024-04-10T17:46:41Z |
| format | Article |
| id | doaj.art-a158c9a6b8e445ed978c7681d454f152 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-04-10T17:46:41Z |
| publishDate | 2023-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-a158c9a6b8e445ed978c7681d454f1522023-02-03T04:58:37ZengElsevierHeliyon2405-84402023-01-0191e12692The impact of broadband speed on innovation: City-level evidence from ChinaJialing Chen0Jiancheng Wang1Institute of Guangdong, Hong Kong and Macao Development Studies, Sun Yat-sen University, Guangzhou, China; The Center for Studies of Hong Kong, Macao and Pearl River Delta, Sun Yat-sen University, Guangzhou, ChinaInternational School of Business & Finance, Sun Yat-sen University, Zhuhai, China; Corresponding author.Previous studies have associated broadband with innovation, but most of them have focused on broadband access or broadband penetration rate rather than broadband speed. However, with the increase in the global broadband penetration rate, network speed is becoming a more important aspect of broadband development. Using a fixed effect model based on panel data from 274 cities in China from 2016 to 2018, we explore the impact of broadband speed on innovation and further validate the relationship by instrumental variable estimation and a series of robustness tests. The main findings are as follows: First, broadband speed significantly promotes patenting, and this effect is greater than the increase in broadband penetration rate. Second, the impact of broadband speed on promoting innovation is more substantial in cities with higher Internet penetration, GDP per capita, science and technology investment, and foreign direct investment. Third, broadband speed could promote innovation by facilitating patenting cooperation among firms. Fourth, we find no evidence of a diminishing marginal effect of broadband speed in this setting. This study has significant practical implications for emerging countries to encourage innovation by increasing broadband speed.http://www.sciencedirect.com/science/article/pii/S2405844022039809Broadband speedInnovationCollaborationBroadband ChinaDigital infrastructure |
| spellingShingle | Jialing Chen Jiancheng Wang The impact of broadband speed on innovation: City-level evidence from China Heliyon Broadband speed Innovation Collaboration Broadband China Digital infrastructure |
| title | The impact of broadband speed on innovation: City-level evidence from China |
| title_full | The impact of broadband speed on innovation: City-level evidence from China |
| title_fullStr | The impact of broadband speed on innovation: City-level evidence from China |
| title_full_unstemmed | The impact of broadband speed on innovation: City-level evidence from China |
| title_short | The impact of broadband speed on innovation: City-level evidence from China |
| title_sort | impact of broadband speed on innovation city level evidence from china |
| topic | Broadband speed Innovation Collaboration Broadband China Digital infrastructure |
| url | http://www.sciencedirect.com/science/article/pii/S2405844022039809 |
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