Cloud technologies, firm growth and industry concentration: Evidence from France

Bernardo Caldarola and Luca Fontanelli

LEM Papers Series from Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy

Abstract: Recent empirical evidence finds positive associations between digitalisation and industry concentration. However, ICT may not be all alike. We investigate the effect of the purchase of cloud services on the long run size growth rate of French firms. Our findings suggest that cloud services positively impact firm growth rates, with smaller firms experiencing more significant benefits compared to larger firms. This evidence suggests that the diffusion of cloud technologies may help mitigate concentration in the era of the digital transition by favouring the digitalisation and growth of smaller firms, especially when the cloud services provided are more advanced.

Keywords: cloud; ICT; concentration; firm growth rate; firm performance (search for similar items in EconPapers)
Date: 2024-10-02
New Economics Papers: this item is included in nep-bec, nep-com, nep-eff, nep-ent, nep-eur, nep-ict, nep-ind, nep-sbm, nep-tid and nep-ure
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Citations: View citations in EconPapers (1)

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