Innovation

Innovation and the use of information and communication technologies (ICT) are key determinants for economic developments in modern economies. For private businesses as well as for public policy makers, new trends and developments in ICT are of key importance as they can alter business processes and even whole value added chains fundamentally. In turn, this offers great opportunities for future growth potentials, but it also bears the risk of creating significant policy distortions if such developments are not sufficiently considered.

At DIW econ we work on various economic aspects of innovations and ICT, including:

  • analysis of drivers and impacts of ICT in various sectors;
  • impact of ICT on productivity and economic growth;
  • impact of ICT on energy consumption and greenhouse gas emissions;
  • economic impact of research and development (R&D) in the short-, medium- and long-run;
  • new technologies and network effects;
  • different standards and coordination problems; and
  • the relation between regulation and technology innovation.

DIW econ Economic Bulletin
How to google “Competition”
January 2011
Download file as pdf (195 KB)

 

EXAMPLES OF OUR EXPERIENCE

  • The Sectoral e-Business W@tch
    For the EU Commission we are studying various aspects of the diffusion and impact of ICT and e-business on enterprises, industries and the overall economy. The project includes an international team of experts and consultants.
  • Economic impact of Biotech cluster Berlin-Buch on the Berlin economy
    For a consortium of Biotech firms we studied the economic impact of the Berlin-Buch campus on the Berlin economy. The analysis included the direct and indirect effects caused by the aggregate expenditures of all biotech firms in Berlin-Buch, as well as the long-term impact of the accumulated research capital on value added in the German health sector.
  • Innovation and coordination
    We analysed the process of technology innovation and market entry with focus on the coordination between market participants. Special emphasise was given to coordination problems which consumers face when two different standards of the same product are available in the market. The project was funded by the Volkswagen Foundation.
  • Economic impact of networks: analysis and policy implications
    For the Federal Ministry of Economics and Technology (BMWi) of Germany we analysed the effects that new technologies such as ICT can have on market structures and competition, and advised on how to use economic policy for guaranteeing proper market functioning.
  • The role of the state for the development of technologies in de-regulated telecommunications markets
    For the Federal Ministry of Education and Research of Germany we studied impact or de-regulated telecommunications markets on service innovations and advised on the role of the state for stimulating further innovations.

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