ICT adoption in Irish manufacturing: An example of merging two CSO business microdata sets
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Transcript of ICT adoption in Irish manufacturing: An example of merging two CSO business microdata sets
ICT adoption in Irish manufacturing: An example
of merging two CSObusiness microdata sets
Stefanie Haller
CSO Business Statistics Seminar, Dublin 26 February 2008
Research question
● What drives the adoption and diffusion of Information and Communication Technology (ICT) at firm level?
Approach• Important factors for technology adoption
• Firm characteristicssectoral specialisation, firm size, internal organisation, human capital
• Local industrial structurespillover effects, competitive pressure, network externalities
• Information from two data sets• Census of Industrial Production (enterprise
data)• Survey on E-Commerce and ICT
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 onturnover, employment (type), ownership, exports, location, industry affiliation
• problems for use• employment refers to one week in September• imputed/estimated information
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
Final data setMerge CIP with E-Commerce
Survey via unique plant identifierObtainunbalanced 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
Indicators of ICT adoptionTwo discrete indicators:
1) Has the enterprise received online orders2) 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:1) Share of employees using computers2) Share of turnover due to online transactions
Discrete indicators of ICT adoption - Summary statistics
Firms % of firms Firms % firms accepting/using 0 1 2 3 4 5 having received
computers orders onlineYear2001 1,852 10.62002 1,748 88.0 62.0 18.0 12.8 4.9 1.8 0.6 2,216 10.92003 2,121 91.3 59.7 18.9 14.1 5.3 1.4 0.7 1,694 14.52004 1,459 96.2 47.8 25.6 17.3 6.4 2.0 0.8 1,267 16.1
Ownershipdomestic 4,475 90.1 60.7 19.3 13.5 4.5 1.5 0.5 5,840 12.5foreign 853 99.4 38.4 26.4 20.4 10.5 2.6 1.8 1,189 13.3
Total 5,328 91.6 57.2 20.4 14.6 5.5 1.7 0.7 7,029 12.6
% of firms offering x services online
Continuous indicators of ICT adoption - Summary statistics
% of employees % of turnoverusing computers due to online
Firms (mean) transactions (mean)Year2001 1,801 1.232002 2,149 32.5 1.192003 1,650 33.6 1.872004 1,235 36.7 2.13
Ownershipdomestic 5,678 30.4 1.24foreign 1,157 49.1 2.96
ICT classificationICT-producing 321 57.3 4.64ICT-using 2,505 39.6 1.62non ICT 4,009 28.7 1.23
Total 6,835 34.0 1.53
Empirical Methodology
• Probit regressions for discrete indicators of ICT adoption
• Fractional logit regressions for continuous indicators of ICT adoption (Papke and Wooldridge, 1996)
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
ijrttrjijrtijrt
ijrtijrtijrtijrtijrtijrt
agemulti
exintclericalmantechwpetoY
76
54321 lnln
ICT adoption: Probit regressions for discrete indicators
0
Dep. Variable
lnto 1.156 (0.000) *** 1.130 (0.000) *** 0.990 (0.696) 1.039 (0.428)lnwpe 1.089 (0.332) 1.178 (0.424) 1.113 (0.251) 0.559 (0.015) **mantech 2.900 (0.000) *** 2.333 (0.021) ** 1.133 (0.580) 2.125 (0.056) *clerical 3.470 (0.000) *** 3.288 (0.010) *** 2.484 (0.000) *** 1.356 (0.588)age 0.996 (0.007) *** 0.995 (0.068) * 1.003 (0.046) ** 1.001 (0.799)exint 1.990 (0.000) *** 0.912 (0.530) 1.488 (0.000) *** 0.881 (0.499)multi 1.254 (0.077) * 0.865 (0.415) 0.861 (0.358) 0.971 (0.913)Dublinborder 0.824 (0.025) ** 1.383 (0.076) * 0.756 (0.008) *** 1.027 (0.913)midlands 0.785 (0.035) ** 1.233 (0.393) 0.660 (0.001) *** 0.513 (0.028) **west 1.043 (0.648) 0.977 (0.904) 1.021 (0.851) 0.524 (0.018) **mideast 0.923 (0.379) 0.881 (0.535) 0.832 (0.095) * 0.764 (0.296)midwest 0.945 (0.583) 1.015 (0.944) 0.773 (0.030) ** 0.784 (0.296)southeast 0.806 (0.011) ** 1.135 (0.441) 0.696 (0.000) *** 0.545 (0.022) **southwest 0.888 (0.141) 0.867 (0.361) 0.723 (0.001) *** 0.773 (0.277)20012002 1.069 (0.180) 0.923 (0.444)2003 1.012 (0.699) 1.043 (0.557) 1.247 (0.000) *** 1.039 (0.731)2004 1.205 (0.000) *** 1.210 (0.018) ** 1.280 (0.000) *** 1.143 (0.267)constant 7.689 (0.000) *** 6.531 (0.003) *** 0.184 (0.000) *** 1.586 (0.553)ICT producing 1.407 (0.026) ** 1.685 (0.000) *** 0.997 (0.988) 1.171 (0.318)ICT using 1.343 (0.000) *** 1.521 (0.000) *** 1.156 (0.020) ** 1.085 (0.625)non-ICT
ObsFirms
omitted category omitted category omitted category omitted category
omitted category omitted categoryomitted category omitted category
omitted category omitted category omitted category omitted category
4385 832 5678 1108
no of services offered online firm accepts/has received orders online
2460 446 2757
foreign firms
474
domestic firms foreign firms domestic firms
ICT adoption: Fractional logit regressions for continuous indicatorsDep. Variable
lnto 0.017 (0.020) 0.227 (0.084) ***lnwpe 0.607 (0.086) *** -0.391 (0.300)mantech 2.200 (0.221) *** 0.375 (0.578)clerical 2.591 (0.175) *** -0.622 (0.539)age -0.003 (0.001) * -0.005 (0.005)exint 0.324 (0.076) *** 0.722 (0.250) ***multi 0.042 (0.112) -1.390 (0.468) ***ind-reg spillovers 2.319 (0.225) *** 5.458 (0.365) ***ind spillovers 0.895 (0.238) *** 0.323 (0.745)Dublinborder -0.347 (0.080) *** -0.073 (0.304)midlands -0.306 (0.102) *** -0.686 (0.383) *west 0.007 (0.096) -0.785 (0.329) **mideast -0.225 (0.088) ** -0.295 (0.320)midwest -0.151 (0.096) -0.738 (0.302) **southeast -0.256 (0.081) *** -0.495 (0.381)southwest -0.081 (0.078) 0.031 (0.409)ICT producing 0.614 (0.122) *** 0.175 (0.310)ICT using 0.387 (0.051) *** 0.169 (0.241)non-ICTconstant -6.350 (0.330) *** -5.960 (0.664) ***year dummies y y
Obs / Firms 4,689 2,707 6,188 3,041
share of employees share of turnover due to using computers online transactions
omitted category
omitted category omitted category
omitted category
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
• industry(j)-region(r) spillovers
Indreg jrt=Y jrta
Y jrt
Ind j r t=Y jta −Y jrt
a
Y jt−Y jrt
• 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
Empirical Methodology - horizontal spillovers
ICT adoption: Continuous indicators with interactions for foreign firms
-0,051 (0.023) ** 0,105 (0.103)0,621 (0.089) *** -0,064 (0.333)1,869 (0.257) *** -0,254 (0.760)2,556 (0.187) *** -0,345 (0.425)
-0,001 (0.001) -0,003 (0.005)0,279 (0.097) *** 0,693 (0.282) **0,020 (0.122) -1,387 (0.479) ***
-1,604 (0.848) * 1,176 (2.908)0,170 (0.044) *** 0,234 (0.151)0,129 (0.295) -1,182 (1.053)1,303 (0.463) *** 1,405 (1.425)0,170 (0.514) -0,772 (1.897)
-0,006 (0.004) * 0,004 (0.011)-0,296 (0.195) 0,497 (0.610)2,376 (0.226) *** 5,464 (0.377) ***0,856 (0.234) *** 0,242 (0.757)
-5,903 (0.336) *** -5,968 (0.704) ***y yy yy y
4.689 2.707 6.188 3.041-2048,8 -343,9
Dep. Variable share of employees share of turnover dueusing computers to online transactions
lntolnwpemantechclericalageexintmultifofo_lntofo_lnwpefo_mantechfo_clericalfo_agefo_exintind-reg spilloversind spilloversconstantregion dummiestime dummiesICT class
Obs / FirmsLogL