Spatial Economic Analysis of Telecommunications Network Externalities

This study provides a detailed analysis of the impact of the European Union's STAR programme on the performance of the economy of Southern Italy. The complicated relationship between technology and economic development is presented and theoretical and empirical evidence on the role telecommunications technologies have on the performance of firms and regions is outlined. It claims that telecommunications networks are not only governed by consumption network externalities, but generate "production network externalities", since their advantages may be measured on the performance of firms and regions. The study provides a methodology to measure both consumption and production network externalities in the field of telecommunications. Policy guidelines are highlighted, which stem from both the theoretical and the empirical results of the analysis.