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Does Experience Matter? Innovations and the Productivity of ICT in German Services

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  • Hempell, Thomas
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    Abstract

    In this paper, it is argued that ICT investment is closely linked with complementary innovations and most productive in firms with innovative experience. In an analysis based on firm?level panel data covering the period 1994?99, system GMM estimates for an extended production function framework reveal significant productivity effects of ICT in the German service sector. Moreover, there is strong support for the hypothesis that the experience gained from past process innovations is a specific feature that makes ICT investment more productive. The results suggest that ICT may have been contributing to productivity differentials between firms. --

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    File URL: http://econstor.eu/bitstream/10419/24642/1/dp0243.pdf
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    Bibliographic Info

    Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 02-43.

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    Date of creation: 2002
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    Handle: RePEc:zbw:zewdip:675

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    Related research

    Keywords: Productivity; Information and Communication Technologies; Innovation; Services; Panel Data;

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    1. Nelson, Richard R, 1982. "The Role of Knowledge in R&D Efficiency," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 97(3), pages 453-70, August.
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