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Not Only Nokia

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  • Francesco Daveri
  • Olmo Silva

Abstract

Has the spurt of IT-centered innovations of the 1990s resulted in sizably higher productivity growth? This question, first raised in the US and later on in Europe and the rest of the world, has not been given a firm answer yet. This paper adds to the evidence on Europe by looking at a seemingly ideal new economy laboratory, i.e. the sectors of Finland. We find three main results. First, Nokia was absolutely crucial in getting all started. Second, much the same as in the US, TFP productivity gains spilled over onto few other sectors and cyclical factors did play a role in boosting productivity in the second part of the 1990s. Third, nevertheless, the timing and the sector distribution of productivity gains are strongly and negatively related to the dynamics of the machinery and equipment sector price deflator. This is suggestive that productivity gains cannot simply be the side effect of fortunate cyclical circumstances.

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Paper provided by IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University in its series Working Papers with number 222.

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Handle: RePEc:igi:igierp:222

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Cited by:
  1. Claudia Senik, 2007. "Ambition and jealousy. Income interactions in the "Old" Europe versus the "New" Europe and the United States," PSE Working Papers, HAL halshs-00590828, HAL.
  2. Andrew Sharpe, 2006. "Lessons for Canada from International Productivity Experience," CSLS Research Reports, Centre for the Study of Living Standards 2006-02, Centre for the Study of Living Standards.
  3. Jalava, Jukka, 2002. "The Production and Use of ICT in Finland," Discussion Papers, The Research Institute of the Finnish Economy 827, The Research Institute of the Finnish Economy.
  4. Daniele Schilirò, 2005. "Economia della Conoscenza, Dinamica Strutturale e Ruolo delle Istituzioni," CRANEC - Working Papers del Centro di Ricerche in Analisi economica e sviluppo economico internazionale, Università Cattolica del Sacro Cuore, Centro di Ricerche in Analisi economica e sviluppo econo crn0502, Università Cattolica del Sacro Cuore, Centro di Ricerche in Analisi economica e sviluppo economico internazionale (CRANEC).

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