INDUCED ADOPTION AND EXTERNALITIES IN THE REGIONAL DIFFUSION OF INFORMATION TECHNOLOGY

Antonelli C. (1990) Induced adoption and externalities in the regional diffusion of information technology, Reg. Studies 24, 31-40. Information technology can be considered as a set of complex radical innovations which continues to evolve and has a major impact both within the plant and the office. In such a context its regional diffusion is likely to be determined by relevant externalities together with the effects of a wage-induced process of localized technological change and adoption. Data on the territorial distribution of fax machines and modems show that the levels of diffusion of information technology in Italy is highly uneven, favouring central regions endowed with higher levels offixed and human capital and consequently income. The econometric analysis confirms that diffusion levels of both fax and modems across provinces are significantly associated with the level of wages as is to be expected from the induced adoption hypothesis and from the existence of external factors such as the presence of metropolitan areas specializing in advanced service industries. In addition, the share of employment in large firms appears to play a role for fax and the share of employment in firms with head office located in the province for modems. © 1990, Taylor & Francis Group. All rights reserved.