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ICT capital and services complementarities: the Italian evidence

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  • Francesco Quatraro

Abstract

This article investigates whether Information and Communication Technologies (ICTs) hardware and services play a complementary role in boosting economic growth. The main argument is that investments in ICT fixed capital are a necessary but not sufficient condition leading to productivity gains, above all in late adopter countries. Their effective implementation indeed requires on the one hand a changing economic structure characterized by a growing weight of service sectors and on the other hand complementary investments in ICT services, directed to ease the integration of the new technologies within firms' boundaries. The analysis is conducted on a late industrialized country like Italy, and shows that in lagging countries the weak impact of ICT adoption is the result of three converging forces: relatively high share of manufacturing sectors, low-adoption levels of ICTs in traditional manufacturing sectors, inadequate investments in ICT services.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 43 (2011)
Issue (Month): 20 ()
Pages: 2603-2613

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Handle: RePEc:taf:applec:v:43:y:2011:i:20:p:2603-2613

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Cited by:
  1. Andersen Birgitte & Rossi Federica, 2010. "Recombinant Knowledge and Growth: The Case Of Icts," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201001, University of Turin.
  2. Jackie Krafft & Francesco Quatraro & Pier-Paolo Saviotti, 2013. "The dynamics of knowledge-intensive sectors' knowledge base: Evidence from Biotechnology and Telecommunications," Working Papers hal-00991397, HAL.
  3. Sadaf Bashir & Bert Sadowski, 2014. "General Purpose Technologies: A Survey, a Critique and Future Research Directions," Working Papers 14-02, Eindhoven Center for Innovation Studies, revised Feb 2014.

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