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 Communication Technologies (ICTs) on productivity. The "Solow Paradox" of the absence of an impact of ICT on productivity no longer holds, if it ever did. Both growth accounting and econometric evidence suggest an important role for ICTs in accounting for productivity. In fact, the empirical estimates suggest a much larger impact of ICT on productivity than would be expected from the standard neoclassical model that we focus on. We discuss the various explanations for these results, including the popular notion of complementary organizational capital. 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)
Date: 2006-08
New Economics Papers: this item is included in nep-cse, nep-eff, nep-his, nep-ict, nep-ino and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (67)

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Working Paper: Productivity and ICT: A Review of the Evidence (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0749

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