 Do capital incentive policies support today’s digitization needs?Raphaela Andres, Thomas Niebel and Steffen Viete Telecommunications Policy, 2024, vol. 48, issue 1 Abstract: Public support schemes are typically targeted towards capital investments. However, the targeting of digitization investments might not only be a missed opportunity to increase the usage of state-of-the-art digital services in the economy, but might even lower the uptake thereof. This paper exploits variation in the eligibility and the size of potential investment subsidies of German firms in order to analyse the relationship with the firms’ propensity to adopt cloud services. Our empirical results are in line with the hypothesis that capital investment schemes lower the use of cloud services by firms: the higher the potential subsidy for investments, the lower the incentive for firms to adopt cloud services. We consider this finding an unintended policy effect which is highly relevant for policy makers, as the adoption of cloud services has been linked to various benefits on the firm as well as on the aggregate economy level. Keywords: Cloud computing; Investment scheme; ICT adoption; Technology diffusion; Policy evaluation (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:telpol:v:48:y:2024:i:1:s030859612300157x Ordering information: This journal article can be ordered from DOI: 10.1016/j.telpol.2023.102646 Access Statistics for this article Telecommunications Policy is currently edited by Erik Bohlin More articles in Telecommunications Policy from Elsevier |
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