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Capital incentive policies in the age of cloud computing: An empirical case study

Raphaela Andres (), Timothy DeStefano, Thomas Niebel and Steffen Viete ()

No 20-036, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: The following paper assesses whether current policy environments are appropriate for the emergence of cloud computing technology. In particular, this research uses firm-level data for Germany and the UK to examine the impact of capital incentive programmes (a common policy present in most OECD countries) on cloud adoption. The design for many of these policies target investments in physical capital while excluding digital services like the cloud. Firms view digital investments and digital services as substitutes, therefore narrowly define dincentive programmes may actually discourage the use of emerging tools like cloud computing, which are found to enable the growth and performance of young entrants. Overall, the results find that while capital incentive policies encourage firm investments in ICT and other forms of capital, they actually reduce the probability of cloud adoption. Policy makers may therefore need to reconsider the design of capital incentive programmes within their jurisdictions.

Keywords: Cloud Computing; Investment Scheme; ICT Adoption; Technology Diffusion; Policy Evaluation (search for similar items in EconPapers)
JEL-codes: D25 L22 O33 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cfn, nep-eur, nep-ict, nep-knm, nep-pay and nep-tid
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https://www.econstor.eu/bitstream/10419/223349/1/1728819822.pdf (application/pdf)

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Working Paper: Capital incentive policies in the age of cloud computing: An empirical case study (2020) Downloads
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