Impact of next‐generation access networks on the innovation efficiency of Portuguese municipalities: A spatial econometrics approach

Abstract

This study evaluates the impact of next-generation-access network coverage on the innovation efficiency of 278 Portuguese municipalities through a spatial panel data analysis focused on the period 2012-2015. We find evidence that the additional territorial coverage of nextgeneration access networks has a significant, negative, indirect, and permanent effect on the innovation efficiency of Portuguese municipalities. Other results include significant time dependence effects and stronger marginal effects in the long run. Several extensions reinforce the qualitative nature of benchmark outcomes. From a regulatory point of view, this research identifies a trade-off in the Portuguese telecommunications industry: universal (restricted) access to next-generation access networks can reduce (improve) the innovation efficiency of Portuguese municipalities, respectively.