ICT technologies in Europe: A study of technological diffusion and economic growth under network theory

•A novel perspective on the ICT sector based on network theory.•Study of the capacity of the knowledge economy for creating new market opportunities.•The ICT sector has the capacity to foster technological diffusion in the European Union.•Negative shocks in the economy have a limited impact over European ICT sector.

The sector of Information and Communication Technologies (ICT) is one of the key instruments for the development of an economy. The literature emphasizes its capacity for both increasing productivity and generating new sources of income and wealth (Colecchia and Schreyer, 2002 and Jorgenson and Stiroh, 1999 among others). Traditionally studies on the ICT sector have focused on the analysis of its economic impact, but not on its capacity as a “bridge” for information and knowledge flows across the economic network. Following Burt's approach (1992) on structural holes, the organization of the economic network defines where and for whom new opportunities lie. The structural hole methodology allows to analyze the capacity of the ICT sector as an enabler of technological diffusion and innovation. The results show that the European ICT sector not only is important for its intermediary role in the flow of information across the economic network, but also for its low level of dependency on other sectors.