U.S. firms that use cloud-computing services are more likely to export their products and services, according to a new study by researchers at Penn State and the U.S. National Science Foundation (NSF). The team said the findings were stronger for firms located outside of large cities and demonstrate the need for expanded availability of the high-speed internet required for cloud computing to support economic development.

The study, which also found that cloud-using firms exported goods and services even more than exporting firms that do not use cloud-based services, is available online now and will be published in the September issue of Telecommunications Policy.

Cloud-based services provide access to computing resources through online platforms such as web browsers or smartphone apps, allowing businesses to store data, access software applications and more. As a result, businesses can often replace in-house information technology infrastructure with solutions that are generally more scalable, flexible and cost-effective.

"Cloud computing is driving a digital transformation across industries, but little is known about how it affects the performance of the firms that use it, especially in terms of their ability to compete in the global marketplace," said Luyi Han, a postdoctoral researcher at the Northeast Regional Center for Rural Development (NERCRD), which is based in Penn State's College of Agricultural Sciences.

"This study is the first to examine this question using U.S. firm-level data and it finds a significant relationship between adoption of cloud services and export performance."

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