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Does experience matter? innovations and the productivity of information and communication technologies in German services

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  • Thomas Hempell

Abstract

In this paper, it is argued that investments in information and communication technologies (ICT) are closely linked to complementary innovations and are most productive in firms with experience from earlier innovations. In the empirical analysis based on firm-level panel data covering the period 1994-1999, 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 experience gained from past process innovations makes ICT capital more productive but does not affect the productivity of other capital goods.

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  • Thomas Hempell, 2005. "Does experience matter? innovations and the productivity of information and communication technologies in German services," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(4), pages 277-303.
    • Handle: RePEc:taf:ecinnt:v:14:y:2005:i:4:p:277-303
    DOI: 10.1080/1043859042000269106
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    Cited by:

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    2. Aleksandra Skorupinska & Joan Torrent-Sellens, 2017. "ICT, Innovation and Productivity: Evidence Based on Eastern European Manufacturing Companies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 768-788, June.
    3. Juan Jung & Enrique López-Bazo & Matteo Grazzi, 2017. "“Internet and enterprise productivity:evidence from Latin America”," AQR Working Papers 201705, University of Barcelona, Regional Quantitative Analysis Group, revised May 2017.
    4. Aline Chiabai & Dirk Rübbelke & Lisa Maurer, 2013. "ICT applications in the research into environmental sustainability: a user preferences approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(1), pages 81-100, February.
    5. Margarita Billon & Rocio Marco & Fernando Lera-Lopez, 2017. "Innovation and ICT use in the EU: an analysis of regional drivers," Empirical Economics, Springer, vol. 53(3), pages 1083-1108, November.
    6. Jenny Meyer, 2010. "Does Social Software Support Service Innovation?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 17(3), pages 289-311.
    7. Dolores Añon Higón & Juan A. Daniel Bonvin, 2023. "Do digitalization spurs SMEs’ participation in foreign markets?," Working Papers 2307, Department of Applied Economics II, Universidad de Valencia.
    8. Sarbu, Miruna, 2022. "The impact of industry 4.0 on innovation performance: Insights from German manufacturing and service firms," Technovation, Elsevier, vol. 113(C).
    9. Isabel Dinis, 2023. "Exploring the Drivers of Microregional Agricultural Labor Productivity: Empirical Insights from Portugal," Agriculture, MDPI, vol. 13(11), pages 1-19, November.
    10. Juan Jung & Gonzalo Gómez-Bengoechea, 2022. "A literature review on firm digitalization: drivers and impacts," Studies on the Spanish Economy eee2022-20, FEDEA.
    11. Dolores Añón Higón & Daniel Bonvin, 2024. "Digitalization and trade participation of SMEs," Small Business Economics, Springer, vol. 62(3), pages 857-877, March.

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