Entrepreneurship and Innovation in ICT Companies: A Picture of ICT Sector Applied to a Small European Economy

Entrepreneurship and Innovation in ICT Companies: A Picture of ICT Sector Applied to a Small European Economy

Luísa Margarida Cagica Carvalho (Open University of Portugal, Portugal & CEFAGE, University of Evora, Portugal) and Paulo Adelino Moreira Martins (Institute Polytechnic of Setúbal, Portugal)
DOI: 10.4018/978-1-4666-4753-4.ch017
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Abstract

This chapter studies entrepreneurship and innovation in ICT companies. The study presents a literature review considering the particular features of ICT companies and proposes an empirical study applied to ICT companies in a small open economy. Empirical study using a relevant sample of ICT Portuguese companies allowed an interesting characterization of this sector in several strategic dimensions. Most ICT companies contribute to the Schumpeterian process of creative destruction, assuming a catalytic role in the creation of new companies (and industries) and in mortality of the less fit companies. In this way, promoting the revitalization and competitive selection with impact on organizational structures and obvious implications for employment, directly or indirectly, tends to save the market friction and contribute to the reduction of transaction and context costs, with a positive impact on productivity and economic growth.
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Definition Of Ict Sector: The Discussion Remains Open

After the discussion about the definition of technology, it is now important to explain the concept at the sector level and, accordingly, in more detail, the Observatory for the Information Society and Knowledge (OSIC) proposed a classification that distributes companies in three categories2: manufacturing, telecommunications services, and other services. However, the classification of economic activities related to that sector remains incomplete3, since other activities can easily be included in the spectrum. As well as the discussion about definition of ICT presented in the last section of this chapter, OECD has an important role in the definition of ICT activities. For further details we may consider Annex 1B: Definitions of the Information Economy Sectors, consulted on page 101 and following in the publication Measuring the Information Economy, OECD (2009). However, and over again as for goods and services in last section, the conceptualization of the sector is still under discussion. It’s important to caveat that the model presented in Figure 1, is not consensual to all. Some OECD groups still argue that the sector should be defined only by entities that include areas of interception or in a more broadly approach.

Figure 1.

Conceptual model proposed to ICT sector

Source: OECD, 2009

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