IDEAS home Printed from
   My bibliography  Save this paper

Investigating the effects of ICT on innovation and performance of European hospitals



Hospitals are making big investments in various types of ICT, so it is important to investigate their effects on innovation and performance. In this paper is presented an empirical study in this direction, based on data for 743 hospitals from 18 European countries, which were collected in the course of the e-Business Survey of the European Union. We specified and estimated econometrically five equations: one for product innovation, one for process innovation and three equations for the three different dimensions of (ICT-enabled) hospital performance that are taken into consideration in this study. All five equations included various ICT-related variables reflecting ICT infrastructure and a series of important ICT applications, some of them hospital-specific, and some others of general business use, and also ICT personnel (viewed as a kind of 'soft' ICT investment), as right-hand variables, while the performance equations also included the two innovation measures. The study contributes threefold to literature. First, it is to our knowledge the first comprehensive study of this kind for European hospitals. Second, it analyzes the effects of various types of ICT on innovation and (ICT-enabled) economic performance of hospitals in an integrated framework. Third, it is based on relatively detailed information on ICT infrastructure and specific ICT applications, both health-specific and general, and also ICT personnel, examining and comparing their effects on innovation and economic performance.

Suggested Citation

  • Spyros Arvanitis & Euripidis N. Loukis, 2014. "Investigating the effects of ICT on innovation and performance of European hospitals," KOF Working papers 14-366, KOF Swiss Economic Institute, ETH Zurich.
  • Handle: RePEc:kof:wpskof:14-366

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    2. Badi Baltagi & Francesco Moscone & Elisa Tosetti, 2012. "Medical technology and the production of health care," Empirical Economics, Springer, vol. 42(2), pages 395-411, April.
    3. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
    4. Klevorick, Alvin K. & Levin, Richard C. & Nelson, Richard R. & Winter, Sidney G., 1995. "On the sources and significance of interindustry differences in technological opportunities," Research Policy, Elsevier, vol. 24(2), pages 185-205, March.
    5. Castellacci, Fulvio, 2008. "Technological paradigms, regimes and trajectories: Manufacturing and service industries in a new taxonomy of sectoral patterns of innovation," Research Policy, Elsevier, vol. 37(6-7), pages 978-994, July.
    6. Djellal, Faridah & Gallouj, FaIz, 2005. "Mapping innovation dynamics in hospitals," Research Policy, Elsevier, vol. 34(6), pages 817-835, August.
    7. Faridah Djellal & Faïz Gallouj, 2007. "Innovation in hospitals: a survey of the literature," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 8(3), pages 181-193, September.
    8. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    9. Lichtenberg, Frank R., 2013. "The impact of therapeutic procedure innovation on hospital patient longevity: Evidence from Western Australia, 2000–2007," Social Science & Medicine, Elsevier, vol. 77(C), pages 50-59.
    10. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    11. Agha, Leila, 2014. "The effects of health information technology on the costs and quality of medical care," Journal of Health Economics, Elsevier, vol. 34(C), pages 19-30.
    12. Borzekowski, Ron, 2009. "Measuring the cost impact of hospital information systems: 1987-1994," Journal of Health Economics, Elsevier, vol. 28(5), pages 938-949, September.
    13. Jonathan Skinner & Douglas Staiger, 2015. "Technology Diffusion and Productivity Growth in Health Care," The Review of Economics and Statistics, MIT Press, vol. 97(5), pages 951-964, December.
    14. Thakur, Ramendra & Hsu, Sonya H.Y. & Fontenot, Gwen, 2012. "Innovation in healthcare: Issues and future trends," Journal of Business Research, Elsevier, vol. 65(4), pages 562-569.
    15. van der Wiel, Henry & van Leeuwen, George & Hempell, Thomas, 2004. "ICT, Innovation and Business Performance in Services: Evidence for Germany and the Netherlands," ZEW Discussion Papers 04-06, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    16. Petri Rouvinen, 2002. "Characteristics of product and process innovators: some evidence from the Finnish innovation survey," Applied Economics Letters, Taylor & Francis Journals, vol. 9(9), pages 575-580.
    17. Spyros Arvanitis, 2008. "Explaining Innovative Activity In Service Industries: Micro Data Evidence For Switzerland," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 17(3), pages 209-225.
    18. Thomas Grebel & Tom Wilfer, 2010. "Innovative cardiological technologies: a model of technology adoption, diffusion and competition," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(4), pages 325-347.
    19. Spyros Arvanitis & Euripidis N. Loukis & Vasiliki Diamantopoulou, 2013. "Are ICT, Workplace Organization and Human Capital Relevant for Innovation?," KOF Working papers 13-333, KOF Swiss Economic Institute, ETH Zurich.
    20. Pierre Mohnen & Bronwyn Hall, 2013. "Innovation and Productivity: An Update," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 47-65, June.
    21. repec:crs:wpaper:9833 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item


    Hospitals; Innovation; Performance; ICT use;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kof:wpskof:14-366. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.