Digital Innovation in East Asia : Do Restrictive Data Policies Matter?
Digital technologies encourage companies to innovate with new processes, goods, and services, which ultimately enhance their competitiveness in local and global markets. This paper analyzes whether a wide set of data restrictions are negatively ass...
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| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/834121580152307973/Digital-Innovation-in-East-Asia-Do-Restrictive-Data-Policies-Matter http://hdl.handle.net/10986/33260 |
| Summary: | Digital technologies encourage companies
to innovate with new processes, goods, and services, which
ultimately enhance their competitiveness in local and global
markets. This paper analyzes whether a wide set of data
restrictions are negatively associated with digital
innovation of firms. The paper develops an index of data
restrictions that measures the level of data policy
restrictiveness for 15 East Asian countries over time. Using
various firm-level data sets, the analysis shows that data
restrictions inhibit firms' ability to innovate. The
analysis takes into account that data restrictions are
likely to have a greater impact in sectors that are more
reliant on software. Regressions show that in countries that
have more restrictive data policies, firms are less likely
to use foreign technologies through licensing as part of
their innovation process. Country-specific cases for which
data are available also show that restrictive data policies
are negatively associated with firms' likelihood of
using intangible assets, such as patents and goodwill, for
performing innovation (in Malaysia and China) and developing
innovations as a result of research and development that are
new to the market (in Vietnam). The paper concludes that
open data policies are likely to foster digital innovation. |
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