This paper explores the productive relationship between Information and Communication Technology (ICT) and services. The firm-level data is pursued to examine how ICT as a technological innovation combined with non-technological factors affect the firm’s economic performance. The study develops an argument that ICT is one of the key economic success factors in this techno-economic paradigm, particularly for service firms. The results demonstrate that the presence and intensity of ICT may be used to explain the higher growth experienced by the service industries in the last few decades. Both productivity and profitability growth are found to be significantly linked to the level of ICT intensity in service firms especially when undertaken jointly with non-technological innovations (organisational changes). The impact of ICT on the service sector is assessed in detail while manufacturing and other innovation activities serve as a benchmark.
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Publisher Info
Paper provided by Centre for Technology, Innovation and Culture, University of Oslo in its series Working Papers on Innovation Studies with number
20070531.
Length: 26 pages Date of creation: Dec 2007 Date of revision: Handle: RePEc:tik:inowpp:20070531
Note: Earlier version was presented at the DRUID summer conference 2006 Contact details of provider: Postal: Postboks 1108 Blindern N-0317 Oslo Phone: 22 84 16 00 Fax: : 22 84 16 01 Email: Web page: http://www.tik.uio.no/Innovation More information through EDIRC
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