2021
DOI: 10.1007/s11149-021-09433-4
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Threshold effects in the regulation-innovation nexus: evidence from the telecommunications industry

Abstract: This study empirically tests the relationship between regulation and innovation in the telecommunications sector by deploying an efficient panel threshold model. The balanced panel dataset comprises of 32 OECD countries over the period 1995-2012. The empirical results unveil that beyond a certain threshold, a further increase in the (de)regulatory intensity leads to a decrease of the sectoral innovation activity. The empirical findings do explain the descriptive evidence of an inverted U-shaped relationship be… Show more

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Cited by 8 publications
(3 citation statements)
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“…We select seven ICT related technologies out of 35 technological fields defined by the World Intellectual Property Organization (WIPO): digital communication, audio-visual technology, telecommunications, basic communication processes, computer technology, IT methods for management and semiconductors. Our decomposition into global and country-specific technological innovations is based on 29 countries for the years 1980 to 2015. incentives to innovate and to patent new developments in the field of digital technologies increased (see Polemis and Tselekounis, 2021). Consequently, we start to observe a clearer pattern.…”
Section: Datamentioning
confidence: 85%
“…We select seven ICT related technologies out of 35 technological fields defined by the World Intellectual Property Organization (WIPO): digital communication, audio-visual technology, telecommunications, basic communication processes, computer technology, IT methods for management and semiconductors. Our decomposition into global and country-specific technological innovations is based on 29 countries for the years 1980 to 2015. incentives to innovate and to patent new developments in the field of digital technologies increased (see Polemis and Tselekounis, 2021). Consequently, we start to observe a clearer pattern.…”
Section: Datamentioning
confidence: 85%
“…Some scholars point out that tax exemption policies lead to intense competition because of their wide range and argue that they have a threshold effect on innovation outcomes [49]. This reflects the idea that in pursuit of better ease of use and practicality, the formulation of the policy content needs to be targeted, meaning that different types of enterprises' absorptive capacity for preferential policies, as well as enterprises' actual capacity and demand, should be considered in the policy formulation process [50].…”
Section: Policy Perceptions Entrepreneurs' Responsive Preferences And...mentioning
confidence: 99%
“…For product development to happen, products should either be new or extensively enhanced with respect to current features, and easy to use parts and materials (Leeuwen et al, 2010). Product innovation encourages business effectiveness and organizations are increasingly being compelled to create new products to fulfil their clients' needs and remain competitive (Polemis & Tselekounis, 2019).Few meta-examinations have upheld the beneficial outcome of product development on firm execution (Sarpong & Teirlinck, 2018). Alegre et al (2006) show that the measurements of product innovation (proficiency and viability) are emphatically and unequivocally related to hierarchical execution.…”
Section: A Product Innovation and Competitive Advantagementioning
confidence: 99%