The Impact of Internet Access on Innovation and Entrepreneurship in Africa
Georges Vivien Houngbonon, Justice Tei Mensah, Nouhoum Traoré
Abstract
This paper investigates the effects \n of access to high-speed internet on innovation and \n entrepreneurship in Africa. The identification strategy \n exploits the staggered arrival of submarine internet cables \n to the coast of Africa and the subsequent rollout of \n terrestrial fiber network across the continent. The findings \n show a positive effect of access to high-speed internet on \n innovation at the firm level, with availability of digital \n skills within the firm playing a key role in the \n internet-innovation nexus. The paper also finds evidence of \n internet-induced entrepreneurship: the probability that a \n household establishes a non-farm business increases when \n connected to the internet. However, the increase in \n entrepreneurial activities is largely concentrated in the \n service sector.