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Effects of Regulation on Innovation in the Information and Communications Sector

27 Pages Posted: 30 Mar 2012 Last revised: 19 Jul 2017

Johannes M. Bauer

Michigan State University-Department of Media and Information

Woohyun Shim

Università degli Studi di Trento; Michigan State University - Department of Telecommunication

Date Written: August 12, 2012

Abstract

This paper examines the effects of sector regulation on innovation in telecommunications and related information industries. Building on innovation research, a typology of innovation processes in ICT industries is developed. The economic and policy conditions conducive to different types of innovation are analyzed to draw inferences on the effects of regulation on innovation. Sector regulatory measures affect innovation in positive and negative ways, leaving the overall effect somewhat ambiguous. Selected conjectures were tested empirically using data for 32 countries for the years 1997-2010. More stringent regulation was associated with a negative effect on some innovation measures but not on others.

Keywords: Innovation, regulation, broadband, ICT services, OECD, TPRC

JEL Classification: L51, L86, L96

Suggested Citation

Bauer, Johannes M. and Shim, Woohyun, Effects of Regulation on Innovation in the Information and Communications Sector (August 12, 2012). 2012 TRPC. Available at SSRN: https://ssrn.com/abstract=2028523 or http://dx.doi.org/10.2139/ssrn.2028523

Johannes M. Bauer

Michigan State University-Department of Media and Information ( email )

409 Communication Arts Building
East Lansing, MI 48824-1212
United States
517-355-8372 (Phone)
517-355-1292 (Fax)

HOME PAGE: http://www.msu.edu/~bauerj

Woohyun Shim (Contact Author)

Università degli Studi di Trento ( email )

Via Sommarive 14
Trento, TN Trento 38123
Italy

Michigan State University - Department of Telecommunication ( email )

409 Communication Arts & Sciences Building
East Lansing, MI 48824-1212
United States

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