New Information Technology and Industrial Change: The by Cristiano Antonelli (auth.), Cristiano Antonelli (eds.)

By Cristiano Antonelli (auth.), Cristiano Antonelli (eds.)

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Extra info for New Information Technology and Industrial Change: The Italian Case

Sample text

When markets are less than perfect because of their monopolistic and oligopolistic structure, when prices fai1l 5 to convey all the relevant information about the value of products, firms have an incentive to internalize the transactions in order to: - Valorize and appropriate technological opportunities generated along technological trajectories in the innovation process by user-producer and learning by doing-learning by using relations; - Appropriate transient monopsony power generated by the introduction of innovation; - Appropriate transient monopolistic power by means of the creation of successive oligopolistic advantages; - Revalue latent economies of scope; - Reduce fund idleness related to vertical relations; - Introduce organizational innovations so as to reduce coordinational costs which are both internal and external to the fim1 (quasi-vertical integration and federation).

International diffusion lags of New Information Technology, play an important role in the explanation of international telephone and telex telecommunication flow while the result is insignificant in the demand of telegrams and leased lines; b) multinational firms use international telecommunications mainly to reduce the coordination costs of internationally spread hierarchies and are strong customers of leased lines and telephones, but less so of telex and telegrams; c) international trading firms exhibit, by contrast, less clear preferences in the use of the different media to reduce transaction costs.

Electronic quasi-integration is based on long term contracts between firms which decide to share hardware and software standards with major constraints on the freedom to switch from one informatic infrastructure to another without the previous agreement of all the parties. The cost of "exit" and switch from one network to another depends on the variety of standards and their differentiation. The order of magnitude is currently considered to be close to 100% of all the informatic infrastructure.

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