Publication:
Do Capital Incentives Distort Technology Diffusion? Evidence on Cloud, Big Data and AI

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dc.contributor.authorDeStefano, Timothy
dc.contributor.authorJohnstone, Nick
dc.contributor.authorKneller, Richard
dc.contributor.authorTimmis, Jonathan
dc.date.accessioned2024-09-19T15:41:23Z
dc.date.available2024-09-19T15:41:23Z
dc.date.issued2024-09-19
dc.description.abstractThe arrival of cloud computing provides firms a new way to access digital technologies as digital services. Yet, capital incentive policies present in every OECD country are still targeted towards investments in information technology (IT) capital. If cloud services are partial substitutes for IT investments, the presence of capital incentive policies by unintentionally discourage the adoption of cloud and technologies that rely on the cloud, such as artificial intelligence (AI) and big data analytics. This paper exploits a tax incentive in the UK for capital investment as a quasi-natural experiment to examine the impact on firm adoption of loud computing, big data analytics and AI. The empirical results find that the policy increased investment in IT capital as would be expected; but it slowed firm adoption of cloud, big data and AI. Matched employer-employee data shows that the policy also led firms to reduce their demand for workers that perform data analytics, but not other types of workersen
dc.identifierhttp://documents.worldbank.org/curated/en/099404009172440311/IDU1bad42116190e21475a1a4481b0ecfdc4e2eb
dc.identifier.doi10.1596/1813-9450-10911
dc.identifier.urihttps://hdl.handle.net/10986/42166
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10911
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCAPITAL INCENTIVES
dc.subjectFIRMS
dc.subjectCLOUD COMPUTING
dc.subjectARTIFICIAL INTELLIGENCE
dc.subjectLABOR FORCE
dc.subjectHUMAN CAPITAL
dc.subjectTECHNOLOGICAL CHANGE
dc.subjectDECENT WORK AND ECONOMIC GROWTH
dc.subjectSDG 8
dc.subjectINDUSTRY, INNOVATION AND INFRASTRUCTURE
dc.subjectSDG 9
dc.titleDo Capital Incentives Distort Technology Diffusion? Evidence on Cloud, Big Data and AIen
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleDo Capital Incentives Distort Technology Diffusion? Evidence on Cloud, Big Data and AI
okr.date.disclosure2024-09-19
okr.date.lastmodified2024-09-17T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099404009172440311/IDU1bad42116190e21475a1a4481b0ecfdc4e2eb
okr.guid099404009172440311
okr.identifier.docmidIDU-bad42116-90e2-475a-a448-b0ecfdc4e2eb
okr.identifier.doi10.1596/1813-9450-10911
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10911
okr.identifier.externaldocumentum34392172
okr.identifier.internaldocumentum34392172
okr.identifier.reportWPS10911
okr.import.id5298
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099404009172440311/pdf/IDU1bad42116190e21475a1a4481b0ecfdc4e2eb.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryUnited Kingdom
okr.topicSocial Protections and Labor::Labor Markets
okr.topicScience and Technology Development::Innovation
okr.topicScience and Technology Development::Technology Innovation
okr.unitEAP Chief Economist Unit (EAPCE)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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