The relationship between technological innovation and regulation in telecommunications

Abstract

After the development of more than 100 years, the world’s telecommunications industry has become an important basic industry, a reflection of national competitiveness and innovation. Compared with the development level of the telecom industry in most countries of the world, China’s telecom technology level is lower, the regulatory system is relatively backward, and the comprehensive development level is lower. In this paper, based on the data of 132 countries, the fixed effect least squares model is established and the relationship between technological innovation and government regulation in the telecom industry is analyzed empirically. It also explores the main factors which influence the technological innovation and the industrial development in the telecommunication regulatory system. The empirical results show that the government regulation has a significant inhibitory effect on technological innovation in the telecommunications industry and there is a positive correlation between the degree of competition in the telecommunications market and the level of technological innovation. So is the degree of privatization of network operators.

Subject Classification:

• MSC2010
• 94A99

Keywords:

• Technological innovation
• Government regulation
• Deregulation
• State-owned property