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The Contribution of ICT to Production Efficiency in Italy: Firm-Level Evidence Using Data Envelopment Analysis and Econometric Estimations

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  • Carlo Milana
  • Alessandro Zeli

Abstract

This paper examines the impact of information and communications technologies (ICTs) on technical production efficiency in a wide range of Italian industries. Technical efficiency, defined as the firm’s distance from the production efficiency frontier, is one important component of productivity. Assessing the role of ICTs in the organisation and control of production processes may be of primary interest for those firms that are trying to rationalise their production organisation and techniques. The survey of firms examined, the Italian ISTAT SCI covering all firms with at least 20 employees, offers an opportunity to test the hypothesis that ICTs, in both hardware and software components, can positively influence production performance. The analysis is carried out within industries defined by the OECD STAN database, to ease international comparability of the empirical results. Technical efficiency of each individual firm is measured by means of data envelopment analysis, a ... La contribution des TIC à l'efficience de la production en Italie : Eléments au niveau de l'entreprise obtenus par analyse de l'enveloppement des données et estimations économétriques Ce rapport analyse l’incidence des technologies de l’information et des communications (TIC) sur l’efficience de la production technique dans un large éventail d’industries italiennes. L’efficience technique, définie comme l’éloignement de l’entreprise par rapport à la frontière de l’efficience de la production, est une composante importante de la productivité. L’évaluation du rôle des TIC dans l’organisation et le contrôle des processus de production peut être d’un intérêt majeur pour les enterprises qui s’efforcent de rationaliser leur organisation et leurs techniques de production. L’enquête auprès des entreprises sur laquelle porte l’étude, qui est l’enquête sur les comptes des entreprises (SCI) de l’ISTAT couvrant l’ensemble des entreprises d’au moins de 20 salariés, offre une possibilité de tester l’hypothèse selon laquelle les TIC, qu’il s’agisse du matériel ou du logiciel, peuvent avoir une influence positive sur les performances de la production. L’analyse est réalisée à ...

Suggested Citation

  • Carlo Milana & Alessandro Zeli, 2002. "The Contribution of ICT to Production Efficiency in Italy: Firm-Level Evidence Using Data Envelopment Analysis and Econometric Estimations," OECD Science, Technology and Industry Working Papers 2002/13, OECD Publishing.
    • Handle: RePEc:oec:stiaaa:2002/13-en
    DOI: 10.1787/101101136045
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    Cited by:

    1. Derya Fındık & Aysıt Tansel, 2013. "Intangible investment and Technical efficiency: The case of software-intensive manufacturing firms in Turkey," EY International Congress on Economics I (EYC2013), October 24-25, 2013, Ankara, Turkey 235, Ekonomik Yaklasim Association.
    2. Claudio Morana, 2003. "Long-Run Growth and Income Distribution: Evidence for Italy and the US," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 62(2), pages 171-210, October.
    3. Sophia P. Dimelis & Sotiris K. Papaioannou, 2011. "Technical Efficiency and the Role of ICT: A Comparison of Developed and Developing Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 47(0), pages 40-53, July.
    4. Atzeni, Gianfranco E. & Carboni, Oliviero A., 2006. "ICT productivity and firm propensity to innovative investment: Evidence from Italian microdata," Information Economics and Policy, Elsevier, vol. 18(2), pages 139-156, June.
    5. Carlo Milana & Leopoldo Nascia & Alessandro Zeli, 2013. "Decomposing multifactor productivity in Italy from 1998 to 2004: evidence from large firms and SMEs using DEA," Journal of Productivity Analysis, Springer, vol. 40(1), pages 99-109, August.
    6. Franck Barry, 2013. "The Knowledge Economy, Economic Transformations and ICT: Regional Dynamics in the Deployment Phase. Case study: Southern and Eastern Ireland," JRC Research Reports JRC83549, Joint Research Centre.
    7. Derya Findik & Aysit Tansel, 2015. "​ Intangible Investment and Technical Efficiency: The Case of Software-Intensive Manufacturing Firms in Turkey," Working Papers 2015/11, Turkish Economic Association.

    More about this item

    Keywords

    efficience technique; ICT; productivity; productivité; technical efficiency; TIC;
    All these keywords.

    JEL classification:

    • D2 - Microeconomics - - Production and Organizations
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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