Digital Leaders vs. Digital Followers: Convergence TheoryTesting in Digital Transformation 1990-2019

• Marinko Škare ^[2] ; Małgorzata Porada-Rochon´ ^[1]
  1. [1] University of Szczecin

     University of Szczecin

     Szczecin, Polonia

     
  2. [2] Juraj Dobrila University of Pula
• Localización: ESIC Digital Economy & Innovation Journal, ISSN-e 2792-8721, Vol. 1, Nº. 1, 2021, págs. 14-37
• Idioma: inglés
• Enlaces
  • Texto completo
• Resumen

  • Digital innovation (digitalization) is the leading factor of growth in the 21st century on the micro and macro level. Digital leading companies will soon drive 50%+ of the gross domestic product worldwide. The dynamics of digital convergence still need full explanation. In this study, we test for convergence in 129 countries from 1990 to 2019. We identify several convergence clubs by log t convergence test. Digital innovation (digitalization in general) is following a diversified transitional path across economies. Club convergence testing enables us to identify digital leaders vs. digital followers. Our results imply that by studying digital leaders' economies, we can estimate digital leadership's main determinants and sources. As drivers, we identify favorable financing conditions, a flexible legal framework for patent and licensing government subsidies for research and development connected innovations. Here, we provide empirical data needed to explore a new and unexplored field of digital convergence. To understand digitalization through digital innovation (firms' transition to digital business models) first, we need to capture quantitative knowledge to understand and explain the process of digital innovation.