Does digital proximity between countries impact entrepreneurship?.

ALDERETE MARÍA VERÓNICA

Info The journal of policy, regulation and strategy for telecommunications, information and media

Emerald

Año: 2015 vol. 17 p. 46 - 65

1463-6697

Purpose: This paper seeks to determine if there is a spatial dependence in the entrepreneurial activity among countries. The existence of a digital proximity could explain the spatial pattern of entrepreneurship. Methodology: This question is empirically addressed by using a five period, 2008-2012 panel data for 35 countries. A spatial fixed effects panel data model is estimated by using the Total Entrepreneurial Activity (TEA) published by the Global Entrepreneurship Monitor (GEM) as the dependent variable.Findings: A significant negative influence of the digital proximity on the entrepreneurial activity is observed. Mobile broadband direct effect is positive while the indirect effect (the spatial spillovers) is negative, leading to a negative total effect on the total entrepreneurial activity. This result is contrary to non-spatial models results. Besides, a higher mobile broadband penetration in a country would lead to a competitive advantage fostering its opportunities for entrepreneurship, but reducing of its neighbours. Originality/value: Examining the relationship between ICT and entrepreneurship, by introducing the spatial effects is the main contribution. This paper expands the scant literature on the ICT impact on entrepreneurship. Results obtained support policies towards enforcing innovation, education and reducing entry regulations for encouraging entrepreneurship. Meanwhile, mobile broadband policies could counteract the entrepreneurial policies results due to the spatial dependence.