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Ict, Business Services And Labour Productivity Growth

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  • Lourens Broersma
  • Bart Van Ark

Abstract

This paper focuses on the diffusion of knowledge intensive business services (KIBS) in relation to information and communication technology-based innovations and their effect on productivity growth. Intermediate purchases of KIBS by any other industry determine the extent of KIBS diffusion. This diffusion is seen as part of the broader process of organisational innovations. We find a significant positive relation between this measure of KIBS diffusion and the intensity of information technology (IT). Not only do use of IT and KIBS both contribute positively to labour productivity growth, we also find that the combination of these two inputs adds further to productivity growth for the aggregate economy.

Suggested Citation

  • Lourens Broersma & Bart Van Ark, 2007. "Ict, Business Services And Labour Productivity Growth," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(6), pages 433-449.
    • Handle: RePEc:taf:ecinnt:v:16:y:2007:i:6:p:433-449
    DOI: 10.1080/10438590600914429
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    References listed on IDEAS

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    1. Jean Gadrey & Faïz Gallouj (ed.), 2002. "Productivity, Innovation and Knowledge in Services," Books, Edward Elgar Publishing, number 2690.
    2. Jean Gadrey & Faïz Gallouj, 2002. "Productivity, Innovation and Knowledge in Services. New Economic and Socio-Economic Approaches," Post-Print halshs-00198351, HAL.
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    Cited by:

    1. Munshi Naser Ibne Afzal & Munshi Naser Ibne Afzal & Jeff Gow & Jeff Gow, 2016. "Electricity Consumption and Information and Communication Technology in the Next Eleven Emerging Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 6(3), pages 381-388.
    2. Pradhan, Rudra P. & Arvin, Mak B. & Norman, Neville R., 2015. "The dynamics of information and communications technologies infrastructure, economic growth, and financial development: Evidence from Asian countries," Technology in Society, Elsevier, vol. 42(C), pages 135-149.
    3. Dutta, Ujjal Protim & Gupta, Hemant & Sengupta, Partha Pratim, 2019. "ICT and health outcome nexus in 30 selected Asian countries: Fresh evidence from panel data analysis," Technology in Society, Elsevier, vol. 59(C).
    4. Jeffrey Kouton & Rafiou R. Bétila & Moïse Lawin, 2021. "The Impact of ICT Development on Health Outcomes in Africa: Does Economic Freedom Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1830-1869, December.
    5. Antonio Musolesi & Jean-Pierre Huiban, 2010. "Innovation and productivity in knowledge intensive business services," Journal of Productivity Analysis, Springer, vol. 34(1), pages 63-81, August.
    6. Karol, Rodriguez & Vélez, Jorge, 2013. "Impacto de las TIC en el nivel de innovación en América Latina y el Caribe: Estimaciones econométricas a nivel de un panel [Impact of ICT on the level of innovation in Latin America and the Caribbe," MPRA Paper 60480, University Library of Munich, Germany, revised Oct 2013.
    7. Martin Falk & Fei Peng, 2013. "The increasing service intensity of European manufacturing," The Service Industries Journal, Taylor & Francis Journals, vol. 33(15-16), pages 1686-1706, December.
    8. Francesco Quatraro, 2009. "Innovation, structural change and productivity growth: evidence from Italian regions, 1980--2003," Cambridge Journal of Economics, Oxford University Press, vol. 33(5), pages 1001-1022, September.
    9. Owusu, Solomon & Szirmai, Adam & Foster-McGregor, Neil, 2020. "The rise of the service sector in the global economy," MERIT Working Papers 2020-056, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Wang, Cong & Lu, Yifan, 2020. "Can economic structural change and transition explain cross-country differences in innovative activity?," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    11. Laura Abramovsky & Rachel Griffith, 2009. "ICT, corporate restructuring and productivity," IFS Working Papers W09/10, Institute for Fiscal Studies.

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