Assessing the economic impacts of ICT

Keith Smith

No 200201, STEP Report series from The STEP Group, Studies in technology, innovation and economic policy

Abstract: This paper is a wide-ranging overview of issues related to the economic impacts of ICT. It discusses the broad issues of theory and method involved in thinking about a new radical technology, such as ICT, in economic change. However this discussion is extended in several directions – into a discussion of statistical and measurement issues, into an overview of the empirical dimensions of ICT in economic growth both at OECD and European levels, and into a discussion of the nature of ICT as a technology. Part of the empirical discussion also relates to the indirect use of ICT competence, and here we use Norwegian data to make a more general point about the impact of ICT. The basic argument here is that many of the analytical claims for regarding ICT as a key driver of economic growth are overstated, and that this has important policy implications.

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