Telecommunications productivity, catch-up and innovation

This study examines telecommunications productivity, technological catch-up and innovation in 74 countries for the period 1991—1995. A summary of partial productivity indicators is presented, and total factor productivity (TFP) growth is calculated using the Malmquist productivity change index. Decomposi-tion of the Malmquist index provides preliminary evidence that developing countries can enhance productiv-ity through catch-up. An econometric model is estimated that relates innovation to market size and two measures of market structure, viz., market concentration and private ownership. Model estimates support the Schumpeterian hypothesis that market size is conducive to innovation. However, the hypothesis that concentration (the dominant carrierÕs share of international message telephone service (IMTS) traƒc) is positively related to innovation is rejected. Finally, the model suggests that increased private ownership o