Productivity, innovation and ICT in old and new Europe
AbstractThis paper investigates the productivity performance of CEE countries vis-à-vis the EU-15 during the 1990s to detect sources of convergence between the two regions. The paper shows that changes in labour intensity have been an important source of productivity convergence during the 1990s, and are likely to remain so in the near future. It is also found that despite lower income levels, ICT capital in the CEE-10 has contributed as much to labour productivity growth as in the EU-15. Industry analysis shows that manufacturing industries that have invested heavily in ICT have been key to the restructuring process. As such ICT may therefore have been an important but probably temporary source of convergence. In the longer run the impact of ICT on growth will have to come primarily from its productive use in services. The paper therefore includes a New Economy Indicator that reflects the existence of conducive environment for continued ICT investment and diffusion. It shows that further reforms are much needed for CEE countries to enter a second convergence phase in the coming decades.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Groningen Growth and Development Centre, University of Groningen in its series GGDC Research Memorandum with number 200469.
Date of creation: 2004
Date of revision:
Other versions of this item:
- Bart van Ark & Marcin Piatkowski, 2004. "Productivity, innovation and ICT in Old and New Europe," International Economics and Economic Policy, Springer, vol. 1(2), pages 215-246, January.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- O52 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Europe
- P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Paul J.J. Welfens, 2005. "Rational Regulatory Policy for the Digital Economy: Theory and EU Policy Options," EIIW Discussion paper disbei136, Universitätsbibliothek Wuppertal, University Library.
- Cette, G. & Kocoglu, Y. & Mairesse, J., 2010.
"Productivity Growth and Levels in France, Japan, the United Kingdom and the United States in the Twentieth Century,"
271, Banque de France.
- Gilbert Cette & Yusuf Kocoglu & Jacques Mairesse, 2009. "Productivity Growth and Levels in France, Japan, the United Kingdom and the United States in the Twentieth Century," NBER Working Papers 15577, National Bureau of Economic Research, Inc.
- Jungmittag, Andre & Welfens, Paul J. J., 2006. "Telecommunications Dynamics, Output and Employment," IZA Discussion Papers 2379, Institute for the Study of Labor (IZA).
- Rouben Indjikain & Donald S. Siegel, 2004.
"The Impact of Investment in IT on Economic Performance: Implications for Developing Countries,"
Rensselaer Working Papers in Economics
0414, Rensselaer Polytechnic Institute, Department of Economics.
- Indjikian, Rouben & Siegel, Donald S., 2005. "The Impact of Investment in IT on Economic Performance: Implications for Developing Countries," World Development, Elsevier, vol. 33(5), pages 681-700, May.
- Kaitila, Ville, 2006. "Productivity, Hours Worked, and Tax/Benefit Systems in Europe and Beyond," Discussion Papers 1015, The Research Institute of the Finnish Economy.
- Paul J.J. Welfens, 2004. "Digitale Soziale Marktwirtschaft: Probleme und Reformoptionen im Kontext der Expansion der Informations- und Kommunikationstechnologie," EIIW Discussion paper disbei123, Universitätsbibliothek Wuppertal, University Library.
- Paul J.J. Welfens, 2006. "Rational Regulatory Policy for the Digital Economy: Theory and EU Policy Options," EIIW Discussion paper disbei146, Universitätsbibliothek Wuppertal, University Library.
- Corsi, Marcella & D'Ippoliti, Carlo & Gumina, Andrea & Battisti, Michele, 2006. "eGEP Economic Model: Final Report on the Benefits, Costs and Financing of eGovernment," MPRA Paper 34396, University Library of Munich, Germany.
- Henriques, Sofia Teives & Kander, Astrid, 2010. "The modest environmental relief resulting from the transition to a service economy," Ecological Economics, Elsevier, vol. 70(2), pages 271-282, December.
- Paul J.J. Welfens, 2005. "Schattenregulierung in der Telekommunikationswirtschaft," EIIW Discussion paper disbei137, Universitätsbibliothek Wuppertal, University Library.
- Zelenyuk, Valentin, 2005. "Testing the impact of ICT in developed countries during 1980-1995: distributional analysis in Solow’s growth accounting framework," MPRA Paper 28029, University Library of Munich, Germany, revised Dec 2010.
- Paul J.J. Welfens & Jens K. Perret, 2010. "Structural Change, Specialization and Growth in EU 25," EIIW Discussion paper disbei173, Universitätsbibliothek Wuppertal, University Library.
- Kravtsova, V & Radosevic, S, 2012.
"Are systems of innovation in Eastern Europe efficient?,"
Open Access publications from University College London
http://discovery.ucl.ac.u, University College London.
- Kravtsova, Victoria & Radosevic, Slavo, 2012. "Are systems of innovation in Eastern Europe efficient?," Economic Systems, Elsevier, vol. 36(1), pages 109-126.
- Jude Cristina & Pop Silaghi Monica, 2011. "Innovation Versus Income Convergence In Central And Eastern Europe. Is There A Correlation?," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 72-79, July.
- Paul J.J. Welfens, 2005. "A Quasi-Cobb Douglas Production Function with Sectoral Progress: Theory and Application to the New Economy," EIIW Discussion paper disbei132, Universitätsbibliothek Wuppertal, University Library.
- Andre Jungmittag & Paul J.J. Welfens, 2005. "Institutions, Telecommunications Dynamics and Policy Challenges: Theory and Empirical Analysis for Germany," EIIW Discussion paper disbei133, Universitätsbibliothek Wuppertal, University Library.
- Pop-Silaghi, Monica & Jude, Cristina & Alexa, Diana & Litan, Cristian, 2012. "Do business and public sector research and development expenditures contribute to economic growth in central and eastern European countries? A dynamic panel estimation," Economics Discussion Papers 2012-4, School of Economics, Kingston University London.
- Sondermann, David, 2012. "Productivity in the euro area: any evidence of convergence?," Working Paper Series 1431, European Central Bank.
- Maroto-Sánchez, Andrés & Cuadrado-Roura, Juan R., 2009. "Is growth of services an obstacle to productivity growth? A comparative analysis," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 254-265, December.
- Piatkowski, Marcin, 2005. "The Potential of ICT for the Development and Economic Restructuring of the New EU Member States and Candidate Countries," MPRA Paper 29397, University Library of Munich, Germany.
- Lars Calmfors & Giancarlo Corsetti & Seppo Honkapohja & John Kay & Gilles Saint-Paul & Hans-Werner Sinn & Jan-Egbert Sturm & Xavier Vives, 2006. "Chapter 3: Economic Growth in the European Union," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 68-88, 03.
- Maria LOREK, 2012. "Politique de clusterisation et systèmes sectoriels d’innovation en Pologne: le cas des TIC à Gdansk CLUSTERING POLICY AND SECTORAL SYSTEMS OF INNOVATION IN POLAND: THE CASE OF THE ICTS IN GDANSK," Working Papers 257, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joke Bulthuis).
If references are entirely missing, you can add them using this form.