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The impact of ICT on productivity of Italian firms: evaluation of the micro-complementarity hypothesis

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  • Cristiana Donati
  • Domenico Sarno

Abstract

The seminal work of Milgrom and Roberts (1990) established that interactions between factors such as Information and Communication Technologies (ICTs), organization and human capital entail a complementary relationship between these inputs; from such interactions, firms are able to exploit productivity gains arising from ICT investment. The empirical analysis is conducted on a panel of Italian manufacturing firms covering the period 2001--2006. The application of a suited System Generalized Method of Moments (SYS-GMM) estimator shows that for firms engaging ICT there exists a more coherent relationship between pair inputs and also among all three inputs considered.

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  • Cristiana Donati & Domenico Sarno, 2013. "The impact of ICT on productivity of Italian firms: evaluation of the micro-complementarity hypothesis," Applied Economics Letters, Taylor & Francis Journals, vol. 20(4), pages 349-352, March.
    • Handle: RePEc:taf:apeclt:v:20:y:2013:i:4:p:349-352
    DOI: 10.1080/13504851.2012.703309
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    Cited by:

    1. Nicola Matteucci & Raffaella Santolini & Silvio Di Fabio, 2023. "ICT diffusion in public administrations and business dynamics: Evidence from Italian municipalities," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1233-1271, December.

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