ICT Adoption in Firms by Using Endogenous Metrics

Abstract

This chapter analyzes the digital divide in Italy and the factors contributing to this situation at both the regional and provincial levels. To do this, we used the registration of Internet domains under the “.it” Country Code Top Level Domain as a proxy. In particular, we analyzed domain names registered by firms. The analysis produced interesting results: The distribution of domains registered by firms in Italian provinces is more concentrated than the distribution related to income and the number of firms, suggesting a diffusive effect. Furthermore, in order to analyze the factors that may contribute to the presence of a digital divide at the regional level, a regression analysis was performed using demographic, social, economic, and infrastructure indicators. The results show that Internet technology, far from being an “equalizer,” follows and possibly intensifies existing differences in economic opportunity in industrialized countries like Italy.