Does Experience Matter? Innovations and the Productivity of ICT in German Services

Thomas Hempell

No 02-43, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: In this paper, it is argued that ICT investment is closely linked with complementary innovations and most productive in firms with innovative experience. In an analysis based on firm?level panel data covering the period 1994?99, system GMM estimates for an extended production function framework reveal significant productivity effects of ICT in the German service sector. Moreover, there is strong support for the hypothesis that the experience gained from past process innovations is a specific feature that makes ICT investment more productive. The results suggest that ICT may have been contributing to productivity differentials between firms.

Keywords: Productivity; Information and Communication Technologies; Innovation; Services; Panel Data (search for similar items in EconPapers)
JEL-codes: C23 D24 L80 O32 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:675

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