Productivity and ICT: A Review of the Evidence

Mirko Draca, Raffaella Sadun () and John van Reenen ()

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: We survey the micro and macro literature on the impact of Information and CommunicationTechnologies (ICTs) on productivity. The "Solow Paradox" of the absence of an impact ofICT on productivity no longer holds, if it ever did. Both growth accounting and econometricevidence suggest an important role for ICTs in accounting for productivity. In fact, theempirical estimates suggest a much larger impact of ICT on productivity than would beexpected from the standard neoclassical model that we focus on. We discuss the variousexplanations for these results, including the popular notion of complementary organizationalcapital. Finally, we offer suggestions for where the literature needs to go.

Keywords: ICT; productivity; organisation (search for similar items in EconPapers)
JEL-codes: E22 E23 F1 O11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-eff, nep-his, nep-ict, nep-ino and nep-mac
Date: 2006-08
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Persistent link: http://EconPapers.repec.org/RePEc:cep:cepdps:dp0749

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