Is Ultra-Broadband Enough? The Relationship between High-Speed Internet and Entrepreneurship in Brandenburg
Recent improvements in broadband infrastructure in Europe have introduced augmented possibilities for both businesses and individuals. As expected, the provision of high-speed internet connections for European users will be an important step towards Industry 4.0 as well as a better entrepreneuri...
Main Authors: | , |
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Format: | Article |
Language: | English |
Published: |
Universitas Indonesia
2020-12-01
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Series: | International Journal of Technology |
Subjects: | |
Online Access: | https://ijtech.eng.ui.ac.id/article/view/4435 |
Summary: | Recent improvements in broadband
infrastructure in Europe have introduced augmented possibilities for both
businesses and individuals. As expected, the provision of high-speed internet
connections for European users will be an important step towards Industry 4.0
as well as a better entrepreneurial milieu. Still, though scientific literature
is replete with examples of how modern communication technologies boost
productivity and economic performance, not much research indicates how
broadband technologies may bolster entrepreneurship, especially at a very
detailed, municipal level. The aim of this study was to find out whether
high-speed broadband provision had any effect on higher firm entry rates in
Brandenburg, Germany. This region was chosen because of its favorable position
in the vicinity of the capital state, Berlin. We carried out an ordinary less
square estimated regression analysis using a dataset built for 417 municipalities.
The results show that ultra-broadband provision had no significant impact on
well-performing municipalities and those located close to Berlin, with no
impact in the general model, and also had a negative correlation in
underperforming and peripheral areas (significant at a 5% level). This leads to
the conclusion that advanced broadband infrastructure does not automatically
translate into higher firm entry rates; there is no such urgency in the need for speed, as it might
appear at first glance. |
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ISSN: | 2086-9614 2087-2100 |