2024/25 | LEM Working Paper Series | |
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Cloud technologies, firm growth and industry concentration: Evidence from France |
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Bernardo Caldarola and Luca Fontanelli |
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Keywords | ||
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cloud, ICT, concentration, firm growth rate, firm performance
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JEL Classifications | ||
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L20, L25, O33
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Abstract | ||
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Recent empirical evidence finds positive
associations between digitalisation and industry
concentration. However, ICT may not be all
alike. We investigate the effect of the purchase
of cloud services on the long run size growth rate
of French firms. Our findings suggest that cloud
services positively impact firm growth rates, with
smaller firms experiencing more significant
benefits compared to larger firms. This evidence
suggests that the diffusion of cloud technologies
may help mitigate concentration in the era of the
digital transition by favouring the digitalisation
and growth of smaller firms, especially when the
cloud services provided are more advanced.
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Downloads | ||
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