Cloud technologies, firm growth and industry concentration

Bernardo Caldarola and Luca Fontanelli

No 2024-026, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

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.

JEL-codes: L20 L25 O33 (search for similar items in EconPapers)
Date: 2024-09-24
New Economics Papers: this item is included in nep-com, nep-ent, nep-ict, nep-pay, nep-sbm and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2024026

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