A Statistical Analysis of Industrial Penetration and Internet Intensity in Taiwan

This paper investigates the effect of industrial penetration (geographic concentration of industries) and internet intensity (the proportion of enterprises that use the internet) for Taiwan manufacturing firms, and analyses whether the relationships are substitutes or complements. The sample observations are based on 153,081 manufacturing plants, and covers 26 two-digit industry categories and 358 geographical townships in Taiwan. The Heckman selection model is used to accommodate sample selectivity for unobservable data for firms that use the internet. The empirical results from two-stage estimation show that: (1) a higher degree of industrial penetration will not affect the probability that firms will use the internet, but will affect the total expenditure on internet intensity; (2) for two-digit SIC industries, industrial penetration generally decreases the total expenditure on internet intensity; and (3) industrial penetration and internet intensity are substitutes

Industrial Penetration and Internet Intensity

This paper investigates the effect of industrial penetration and internet intensity for Taiwan manufacturing firms, and analyses whether the relationships are substitutes or complements. The sample observations are based on 153,081 manufacturing plants, and covers 26 two-digit industry categories and 358 geographical townships in Taiwan. The Heckman selection model is used to accommodate sample selectivity for unobservable data for firms that use the internet. The empirical results from two-stage estimation show that: (1) a higher degree of industrial penetration will not affect the probability that firms will use the internet, but will affect the total expenditure on internet intensity; (2) for two-digit industries, industrial penetration generally decreases the total expenditure on internet intensity; and (3) industrial penetration and internet intensity are substitutes

The ICT Landscape in Brazil, India and China

The Information Society Unit at IPTS (European Commission) has been investigating the Information and Communication Technologies (ICT) sector and ICT R&D in Asia for several years. This research exercise led to three reports, written by national experts, on China, India and Taiwan, each one including a dataset and a technical annex. This report offers a synthesis on three out of the four BRIC countries (Brazil, India, Russia, China). The report describes, for each of the three countries (Brazil, India, China), its ICT sector, and gives a company level assessment. It also analyses Indian ICT R&D strategies, and assesses the innovation model. In 2010, BRIC countries accounted for 13% of global demand, with spending of about €328 billion in ICT (EITO, 2011). Therefore, they are becoming major players as producers of ICT goods and services. China has become the world’s largest producer of ICT products (exports of ICT increased fourfold between 2004 and 2008). This impressive growth of the ICT market is translated into R&D expenditures and output. Innovative capability in Asia has grown, the dynamics in terms of catching up are strong. Asian countries are increasingly present in the ICT R&D global landscape.JRC.J.3-Information Societ

Avenues for Export Diversification: Issues for Low-Income Countries

While diversification of exports is often a desirable trade objective, it is far from clear how best to tap into new opportunities. This paper discusses the range of avenues of diversification, including (i) expanding the range of markets into which existing products are sold (geographic diversification); (ii) upgrading the value of existing products, including agricultural exports (quality diversification); and (iii) taking advantage of opportunities to expand non-merchandise exports (services diversification), in addition to introducing entirely new export products. All offer opportunities for cost-effective positive policies relating to the incentive regime, backbone services, and export support institutions.Exports, trade, services, growth, low income countries, world markets

An estimation of the pattern of diffusion of mobile phones: the case of Colombia

In this paper we fond that the difusion pattern of mobile telephony in Colombia can be best haracterised as following a Logistic curve. Although in recent years the rate of growth of mobile phone subscribers has started to slow down, we find evidence that there is still room for further expansion as thesaturation level is expected to be reached in five years time. The estimated saturation level is consistent with some individuals possessing more than one mobile device.Technology di¤usion; Mobile telecommunications; Gompertzcurve; Logistic curve; Colombia.

The implications of WTO accession on the pharmaceutical industry in China

Given the limited capabilities of R&D and global distribution channels, and the virtual non-existence of patented drugs, the Chinese pharmaceutical industry has little chance to enter the global market of Western prescription drugs and compete with the established global giants head-on. The reality is that they are chasing a moving target and their competitors are becoming bigger and stronger day by day. The substantial reduction of import tariffs and the granting of comprehensive trading and distribution rights to foreign-financed firms following WTO accession, effectively tilted the level-playing field against the Chinese pharmaceutical industry. Given the short-term competitive advantages of the Chinese pharmaceutical industry on Chinese drugs, three development strategies are suggested: (1) consolidate the local market of herbal and generic drugs; (2) market Chinese drugs via the Internet; and (3) outsource R&D and collaborative marketing

Towards a taxonomy of innovation systems

The concept of National Innovation System (NIS) has been recently applied in the context of developing nations even tough it was originally developed in relation to the more developed economies (Japan, Scandinavian countries, US etc.). This raises the methodological problem of knowing whether what was learnt in the study of more advanced NISs is relevant for all sorts of economies regardless the maturity of their actual innovation systems. With this question in mind an exploratory exercise is implemented. First a technique for mapping different NIS is put forward and next based on such mapping a taxonomy of NISs is proposed. The technique although simple in the steps it requires shows analytical potential. The cartography it generates allows one to compare directly different countries, by visualizing in bi-dimensional space the graphic pattern of the relevant dimensions of their respective NISs. This technique is applied to 69 countries (87.4% of the world population) and a set of 29 indicators is used to examine these NISs along eight major dimensions. With the resulting data, and with the help of cluster analysis, a taxonomy of innovation systems is proposed. That taxonomy which contains 6 major types of NISs indicates that what differentiates most the individual systems is their performance in three critical dimensions: innovation, diffusion and basic and applied knowledge. Country size and the natural resources endowment of the economies also emerge as important contingency factors underlying the overall dynamics of different NISs.innovation; national innovation systems; economic development.

Regulation and Internet Use in Developing Countries

Concerns about a worsening "digital divide" between rich and poor countries parallel the hope that information and computing technologies (ICTs) could increase economic growth in developing countries. Little research, however, has explored ICT growth beyond noting that it is correlated with standard development indicators, and no empirical research has explored the role of regulation. In this paper, Scott Wallsten uses data from a unique new survey of telecommunications regulators and other sources to measure the effects of regulation on Internet development. Controlling for factors such as income, telecommunications infrastructure development, ubiquity of personal computers, and time trends,Mr.Wallstenfinds that countries requiring formal regulatory approval for Internet Service Providers (ISPs) to operate have fewer Internet users and hosts than countries that do not require such approval. Moreover, countries that regulate ISP final-user prices have higher Internet access prices than countries without such regulations. These results suggest that developing countries' own regulatory policies can have large impacts on the digital divide.Technology and Industry, Regulatory Reform, Other Topics

Two Faces: Effects of Business Groups on Innovation in Emerging Economies

This paper argues that business groups in emerging economies exert dual effects on innovation. While groups encourage innovation by providing institutional infrastructures, groups also discourage innovation by creating entry barriers for small and non-group firms and inhibiting the proliferation of new ideas. Using OLS and panel data estimation techniques, followed by nonparametric analysis and semiparametric kernel regression, we find evidence of an inverted-U relation between group market share and innovation in industrial sectors of both Korea and Taiwan, during the 1981-1995 period. Institutional differences between Korea and Taiwan in terms of market structure and industrial policies provide useful conceptual implications from the empirical comparison.