Experimenting in the cloud: The digital divide's impact on innovation

Han, Luyi; Wojan, Timothy R.; Goetz, Stephan J.

doi:10.1016/j.telpol.2023.102578

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Experimenting in the cloud: The digital divide's impact on innovation

Han, Luyi·Wojan, Timothy R.·Goetz, Stephan J.

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Abstract

This paper builds on a recent National Science Foundation working paper that identified a strong association between cloud use and various types of innovation but did not consider whether 1) cloud adoption is a reliable indicator of the innovation orientation of a firm, or 2) cloud adoption enables various types of innovation. We estimate propensity score matching and endogenous treatment effect models to control for innovation orientation, producing evidence to test the second explanation. Here, findings support an enabling effect of the cloud on innovation providing concrete evidence of the adverse impact of the digital divide.

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96 KNOWLEDGE MANAGEMENT AND PRESERVATION Business practice innovation Marketing innovation Communication Digitalization Endogenous treatment effect Information Science & Library Science Product innovation Propensity score matching Telecommunications

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Han, Luyi, Wojan, Timothy R., Goetz, Stephan J.. 2023-06-09. Experimenting in the cloud: The digital divide's impact on innovation. https://doi.org/10.1016/j.telpol.2023.102578

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