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ICT adoption in Irish manufacturing: An example of merging two CSO business microdata sets

Stefanie Haller CSO Business Statistics Seminar, Dublin 26 February 2008. ICT adoption in Irish manufacturing: An example of merging two CSO business microdata sets. Research question. What drives the adoption and diffusion of Information and Communication Technology (ICT) at firm level?.

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ICT adoption in Irish manufacturing: An example of merging two CSO business microdata sets

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  1. Stefanie Haller CSO Business Statistics Seminar, Dublin 26 February 2008 ICT adoption in Irish manufacturing: An example of merging two CSObusiness microdata sets

  2. Research question • What drives the adoption and diffusion of Information and Communication Technology (ICT) at firm level?

  3. Approach • Important factors for technology adoption • Firm characteristics sectoral specialisation, firm size, internal organisation, human capital • Local industrial structure spillover effects, competitive pressure, network externalities • Information from two data sets • Census of Industrial Production (enterprise data) • Survey on E-Commerce and ICT

  4. Census of Industrial Production • collected annually in its current form since 1991 • covers all enterprises/local units with 3 or more employees in mining, manufacturing and utilities • contains information on turnover, employment (type), ownership, exports, location, industry affiliation • problems for use • employment refers to one week in September • imputed/estimated information

  5. Survey on E-Commerce and ICT • collected annually since 2003 (pilot 2002) • covers 40-50% of enterprises in CIP (sample re-drawn every year), broadly representative • contains information on internet usage, connection to internet, reasons for using the internet, sales and purchases via the internet, barriers to e-commerce • problems for use • data coding changed over time • addition/elimination of options to multiple-choice questions

  6. Final data set Merge CIP with E-Commerce Survey via unique plant identifier Obtain unbalanced panel of NACE sectors 15-36 • for period 2002-2004 for most indicators • for period 2001-2004 for information relating to monetary values • exclude sectors 16 (tobacco) and 23 (refined petroleum) for lack of variation and reasons of confidentiality

  7. Indicators of ICT adoption Two discrete indicators: • Has the enterprise received online orders • Index of services offered online (0-5): • marketing the enterprise’s products • facilitating access to product catalogues and price lists • customised page for repeat clients • delivering digital products • providing after sales support Two continuous indicators: • Share of employees using computers • Share of turnover due to online transactions

  8. Discrete indicators of ICT adoption - Summary statistics

  9. Continuous indicators of ICT adoption - Summary statistics

  10. where • lnto=log(turnover 1000€) • lnwpe=log(wages per employee in 1000€) • mantech: share of managerial & technical staff in employees • clerical: share of clerical staff in employees • exint: export intensity • multi=1 if enterprise is part of multi-plant enterprise Empirical Methodology • Probit regressions for discrete indicators of ICT adoption • Fractional logit regressions for continuous indicators of ICT adoption (Papke and Wooldridge, 1996)

  11. ICT adoption: Probit regressions for discrete indicators 0

  12. ICT adoption: Fractional logit regressions for continuous indicators

  13. Summary and Conclusions • Firms with more skilled employees, firms in ICT-related industries, firms located in the Dublin area more successful in ICT adoption • Proximity to firms that have adopted ICT positively associated with the share of employees using computers and the share of turnover due to online transactions • Patterns of ICT adoption differ for domestic and foreign-owned firms regarding size and export intensity • Delays and differences in ICT adoption rates

  14. Empirical Methodology - horizontal spillovers • industry(j)-region(r) spillovers • industry spillovers where Ya = # of firms using computers if the dependent variable is the share of employees using computers = # of firms having received orders online if the dep. var. is the share of turnover due to internet transactions

  15. ICT adoption: Continuous indicators with interactions for foreign firms

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