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Government’s support for adoption of digital technologies and firms’ innovation during the COVID-19 pandemic

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The purpose of this study is to examine the relationship between government support, through technical assistance or subsidies, for adoption of digital technologies and the introduction of new or improved… Click to show full abstract

The purpose of this study is to examine the relationship between government support, through technical assistance or subsidies, for adoption of digital technologies and the introduction of new or improved products or services by firms. By applying Probit regression to data provided in World Bank Enterprise Surveys covering the period in late 2020 to early 2021 for three lower-middle-income and high-income economies, we find that governmental support for adoption of digital technologies raised the probability of an enterprise's innovation in those economies.

Keywords: support adoption; adoption digital; government support; digital technologies

Journal Title: Applied Economics
Year Published: 2022

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