George van Leeuwen (CPB, Netherlands), Henry van der Wiel

ICT, innovation and productivity

Can productivity growth be boosted by further investments in ICT? This article presents evidence on the relation between ICT use, innovation and productivity based on firm-level panel data. ICT can contribute to labour productivity growth directly through capital deepening and indirectly by enhancing innovation. The results also indicate that the potential of many firms to catch up their ICT endeavour may boost (aggregate) labour productivity growth further.

Keywords: linked longitudinal employer-employee data, unobserved heterogeneity, durations, semi-parametric mixtures.

JEL Codes: J31, J63, C33, C41

Session: 1a   Auditorium   Category: ICT - OECD Session

Paper