Abstract
In this article we estimate the determinants of broadband penetration in Europe. We use data from the European Innovation Scoreboard of the European Commission for 37 countries in the period 2010-2019. We apply Panel Data with Fixed Effects, Panel Data with Random Effects, WLS, OLS and Dynamic Panel. We found that the level of “Broadband Penetration” in Europe is positively associated to “Enterprises Providing ICT Training”, “Innovative Sales Share”, “Intellectual Assets”, “Knowledge-Intensive Service Exports”, “Turnover Share SMEs”, “Innovation Friendly Environment” and negatively associated with “Government procurement of advanced technology products”, “Sales Impact”, “Firm Investments”, “Opportunity-Driven Entrepreneurship”, “Most Cited Publications”, “Rule of Law”. In adjunct we perform a clusterization with k-Means algorithm optimized with the Silhouette Coefficient and we find the presence of three different clusters. Finally, we apply eight machine learning algorithms to predict the level of “Broadband Penetration” in Europe and we find that the Polynomial Regression algorithm is the best predictor and that the level of the variable is expected to increase of 10,4%.
Highlights
In this article we investigate the determinants of broadband penetration in 37 European countries in the period 2010-2019
In the first paragraph we present a theoretical introduction considering the role of broadband penetration as a tool to promote economic growth
Empirical studies have shown the presence of a positive relationship between broadband penetration and economic growth either in developed either in developing countries
Summary
In this article we investigate the determinants of broadband penetration in 37 European countries in the period 2010-2019. Broadband penetration is essential to promote the effective digitalization of the economy. The ability to promote innovation technology especially in ICT sector is deeply associated with the efficiency and capacity of broadband penetration. The investment in innovation technology is positively associated to deeper expenditures in Research and Development either at a country level [6] either in the corporate dimension [7]. Innovation technology, in the sense of digitalization, has positive effects on employment [8]. For all these motivations it is important to analyze the question of broadband penetration for its role in promoting digitalization and innovation technology. There is a positive relationship between broadband penetration and the economic growth in Asia either in high income countries
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