14:15 - 15:45
New Technology and Entrepreneurship
We study how entrepreneurs respond to investment opportunities created by new technologies. Using the staggered rollout of broadband internet in Norway as a natural experiment, we find that access to the new technology increases startup rates by about 25% without reducing their quality.
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Hans Hvide is a professor of Economics and Finance at the University of Bergen (affiliated with CEPR and University of Aberdeen).
To join the lecture via Zoom, please register here.
We study how entrepreneurs respond to investment opportunities created by new technologies. Using the staggered rollout of broadband internet in Norway as a natural experiment, we find that access to the new technology increases startup rates by about 25% without reducing their quality. The effects are strongest in ICT-intensive industries, and treated entrepreneurs are more likely to invest in complementary assets such as computers. Consistent with existing literature, established firms show a more muted response to the new technology. Our findings
suggest that entrepreneurs play a key role in adapting the economy to technological change.
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