Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/223349 
Year of Publication: 
2020
Series/Report no.: 
ZEW Discussion Papers No. 20-036
Publisher: 
ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung, Mannheim
Abstract: 
The following paper assesses whether current policy environments are appropriate for the emergence of cloud computing technology. In particular, this research uses firm-level data for Germany and the UK to examine the impact of capital incentive programmes (a common policy present in most OECD countries) on cloud adoption. The design for many of these policies target investments in physical capital while excluding digital services like the cloud. Firms view digital investments and digital services as substitutes, therefore narrowly define dincentive programmes may actually discourage the use of emerging tools like cloud computing, which are found to enable the growth and performance of young entrants. Overall, the results find that while capital incentive policies encourage firm investments in ICT and other forms of capital, they actually reduce the probability of cloud adoption. Policy makers may therefore need to reconsider the design of capital incentive programmes within their jurisdictions.
Subjects: 
Cloud Computing
Investment Scheme
ICT Adoption
Technology Diffusion
Policy Evaluation
JEL: 
D25
L22
O33
Document Type: 
Working Paper

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