# A Statistical Analysis of Industrial Penetration and Internet Intensity in Taiwan +
## 2 Firm's Internet Intensity and Geographical Concentration
However, the effect of internet intensity in terms of its impact on IT-related manufacturing and information technology-related services was not found to be significantly different from each other. [18] [PERSON] and [PERSON] (2008) used a French manufacturers' sample survey data for 2002 to examine the behavior of firms in the e-commerce industry in terms of their use of \"Information and Communications Technology (ICT)\". Their empirical research indicated that, for those manufacturers that are located in rural areas, the degree to which they used the internet was lower than that for their counterparts in urban areas. Moreover, for those industries for which there was a higher degree of penetration, the less that manufacturers used the internet, there was a substitution relationship between internet intensity and penetration. [19] [PERSON] (1999) used survey data for 1994 to investigate the factors affecting the manufacturers' use of the internet for India's manufacturing industry. Based on how much the sampled firms used IT technology (IT), [PERSON] grouped the manufacturers into the following categories: (1) manufacturers without technology; (2) manufacturers with a low level of technology; (3) manufacturers with a medium level of technology; and (4) manufacturers with a high level of technology. [19] [PERSON] (1999) referred to four categories of factors that affected internet intensity, namely: (1) the characteristics of entrepreneurs, which included the managers' qualifications, and their ability to understand R & D, and the degree of importance that they attached to product quality and market share; (2) international orientation (how much products were imported and exported); (3) human capital; and (4) the manufacturers' scale of operations. The empirical results showed that the education of managers and the scale of the manufacturers' operations and R & D had a significant and positive impact on the use of the internet. Moreover, [19] [PERSON] (1999) emphasized that the rapid growth of internet technology and information technology had increased the demand for skilled labor in developing countries, thereby making small- and medium-sized enterprises more globally competitive. [8] [PERSON] and [PERSON] (2002) used sample survey data for German companies in both the services and manufacturing industry sectors for 2000, and examined the factors affecting how manufacturers decided to use B2B (business-to-business) internet technology. They categorized the intensity of internet technology by manufacturers according to whether they: (1) had not used B2B internet technology (internet technology supports business-to-business e-commerce); (2) had used B2B internet technology; and (3) had used B2B internet technology extensively. They used factors that had been deemed in the literature to have affected the manufacturer's adoption of new technologies, including the scale of the manufacturer's operations, the age of the plant, human capital, and international competitive pressure, as well as factors that had not been considered in the extant literature, such as electronic data interchange (EDI), which can be regarded as a precursor to B2B electronic commerce, and the bandwagon effect or herd behavior, among others. [8] [PERSON] and [PERSON] (2002) highlighted the following empirical findings: that the scale of the manufacturers' operations, the quality of staff, and the degree of openness to international markets had a significant and positive impact on how manufacturers used B2B internet technology; that the probability that manufacturers that had used EDI technology in the past would extensively use B2B technology in the future was extremely high; and, that the more that other manufacturers within the same industry used internet technology, the greater was the likelihood that the manufacturers would themselves use new technologies. [20] [PERSON] and [PERSON] (2007) examined the factors determining the use of information technology (IT) by SMEs (Small and Medium-sized Enterprises) in Italy's manufacturing industry.