ICT Infrastructure: Potential, Utilisation and Economic Development

Data on the expansion of the Telekom Austria broadband network and on job development at the community level are used in an econometric model to discover a link between broadband expansion and regional economic growth. Although both theoretical and empirical studies are agreed that a well-appointed infrastructure is necessary for economic growth and high productivity, an empirical assessment of this hypothesis at a small-scale level is hampered by the fact that regional economic growth is affected by a multitude of factors. Nevertheless, the study yields some initial empirical evidence that a good broadband infrastructure is conducive to the economic development of a region.