Advanced Search
MyIDEAS: Login to save this paper or follow this series

Are ICT, Human Capital and Organizational Capital Complementary in Production? Evidence from Italian Panel Data


Author Info


Information and communication technologies (ICT) are believed to play a central role in determining productivity, especially when ICT investments are complemented in investments in Organizational Capital and Human Capital. In this paper we explore the ICT-Organizational Innovation-Human Capital complementarities issue for the Manufacturing sector in Italy. We use data from the 7th, 8th and 9th waves of the "Indagine sulle Imprese Manifatturiere Italiane", which contains information on ICT investments, organizational innovations, the skill composition of the work-force and on many other variables (measured at the firm level). From these three waves we create an unbalanced panel, and we take the wave-to-wave variation in the log of productivity and regress it on a series of explanatory variables, including ICT investment, the presence of organizational innovations, the skill composition of the work force and their interactions. On these differenced data we run OLS and find no evidence of the complementary hypothesis between ICT investment and organizational innovations, which is per se an interesting result, given that for many other (European) countries there exists significant evidence of complementarity. This is perhaps due to 1) the focus on manufacturing firms and 2) the fact that most firms in our dataset are medium-small firms (i.e. organizational change is more complementary with ICT investment for large firms). Our data also signal that the skill composition of the work-force is a strong determinant of productivity (either alone or when interacted with other potentially complementary assets). Finally, ICT investment is a complement to human capital in stimulating productivity growth.

Download Info

If 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.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by Institute for Prospective and Technological Studies, Joint Research Centre in its series JRC-IPTS Working Papers with number JRC75890.

as in new window
Length: 44 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:ipt:iptwpa:jrc75890

Contact details of provider:
Postal: C/ Inca Garcilaso, s/n 41092 Seville
Phone: +34 954 48 8318
Fax: +34 954 48 8300
Web page:
More information through EDIRC

Related research

Keywords: ICT; Organizational change; productivity;

Find related papers by JEL classification:


No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Federico Biagi, 2013. "ICT and Productivity: A Review of the Literature," JRC-IPTS Working Papers on Digital Economy 2013-09, Institute of Prospective Technological Studies, Joint Research Centre.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:ipt:iptwpa:jrc75890. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rafael Castillo).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.