The main aim of Chapter is to determine factors that enhance or temper the’ private incentives of firms to invest in telecommunication technologies. We analyse the impact of the parameters defining the network externality effect - the extent of the network effect and the number of users - on total factor productivity and telecommunications investment. If we look at a given territory, our model predicts that the most favourable condition for a firm to increase its investment in network technologies and obtain the most efficient total factor productivity is : being in a market with low product differentiation, a large number of users, intensive network externality and considerable technological opportunities linked to the telecommunication network. These factors can be interpreted as determinants of territorial growth with respect to network infrastructure. However, there is conflict between private incentives to telecommunications usage and their effects on total welfare.

Interconnection-Infrastructure as a Prerequisite for the Developmentof Territories – The Role of Network Externalities

CRETI', ANNA
2009

Abstract

The main aim of Chapter is to determine factors that enhance or temper the’ private incentives of firms to invest in telecommunication technologies. We analyse the impact of the parameters defining the network externality effect - the extent of the network effect and the number of users - on total factor productivity and telecommunications investment. If we look at a given territory, our model predicts that the most favourable condition for a firm to increase its investment in network technologies and obtain the most efficient total factor productivity is : being in a market with low product differentiation, a large number of users, intensive network externality and considerable technological opportunities linked to the telecommunication network. These factors can be interpreted as determinants of territorial growth with respect to network infrastructure. However, there is conflict between private incentives to telecommunications usage and their effects on total welfare.
2009
9783540709237
U. Fratesi; L. Senn
Growth and Innovation of Competitive Regions
--
Creti', Anna
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/2601391
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact