New Technology and Entrepreneurship

Hans K. Hvide and Tom G. Meling

No 21200, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We study how entrepreneurs respond to investment opportunities created by new technologies. Using the staggered rollout of broadband internet in Norway as a natural experiment, we find that access to the new technology increases startup rates by about 25% without reducing their quality. The effects are strongest in ICT-intensive industries, and treated entrepreneurs are more likely to invest in complementary assets such as computers. Consistent with existing literature, established firms show a more muted response to the new technology. Our findings suggest that entrepreneurs play a key role in adapting the economy to technological change.

Keywords: Broadband; entrepreneurship; Technology adoption; Technology diffusion (search for similar items in EconPapers)
JEL-codes: D21 D24 G39 J23 L11 L25 (search for similar items in EconPapers)
Date: 2026-02
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