Luis Garicano () and
Esteban Rossi-Hansberg ()
Journal of Economic Theory, 2012, vol. 147, issue 2, 623-656
We propose a framework to study the impact of information and communication technology on growth through its impact on organization and innovation. Agents accumulate knowledge to use available technologies and invent new ones. The use of a technology requires the development of organizations to coordinate the work of experts, which takes time. We find that while advances in information technology always increase growth, improvements in communication technology may lead to lower growth and even to stagnation, since the payoff to exploiting available technologies through organizations increases relative to the payoff from developing new innovations.
Keywords: Organization; Knowledge; Productivity growth; Information and communication technology; Innovations (search for similar items in EconPapers)
JEL-codes: D24 L23 O33 O40 (search for similar items in EconPapers)
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Working Paper: Organizing Growth (2008)
Working Paper: Organizing Growth (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:147:y:2012:i:2:p:623-656
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