IDEAS home Printed from
   My bibliography  Save this paper

The impact of ICT on the growth of the service industries


  • Koson Sapprasert

    (Centre for Technology, Innovation and Culture, University of Oslo)


This study examines the contribution of Information and Communication Technology (ICT) to a growth in services. Data at the firm level is employed to investigate how ICT as a key technology, combined with non-technological determinants, can influence firm performance. The study develops an argument that ICT is one of the major success factors at the present time, and this particularly holds true in the case of service firms, primarily due to their fundamental characteristics of interactivity and intensity of information, which are highly compatible with this technology. The results indicate that the presence of ICT explains the higher growth in productivity and profitability experienced by firms in the service industries. Growth in services was also found to be significantly linked to the level of ICT intensity in service firms, especially when this intensity is complemented by organisational change. The impact of ICT on service firms is assessed in detail, while manufacturing firms and other innovation activities serve as benchmarks.

Suggested Citation

  • Koson Sapprasert, 2007. "The impact of ICT on the growth of the service industries," Working Papers on Innovation Studies 20070531, Centre for Technology, Innovation and Culture, University of Oslo, revised Apr 2010.
  • Handle: RePEc:tik:inowpp:20070531
    Note: Earlier version was presented at the DRUID summer conference 2006

    Download full text from publisher

    File URL:
    File Function: Revised version, 2010
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Alexandre Trigo, 2013. "The Nature of Innovation in R&D- and Non-R&D-Intensive Service Firms: Evidence from Firm-Level Latent Class Analysis," Industry and Innovation, Taylor & Francis Journals, vol. 20(1), pages 48-68, January.
    2. Mugobi, Thereza & Mlozi, Shogo, 2021. "The impact of external factors on ICT usage practices at UNESCO World Heritage Sites," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(1), pages 3-12.
    3. Muhammad Salam & Javed Iqbal & Anwar Hussain & Hamid Iqbal, 2018. "The Determinants of Services Sector Growth: A Comparative Analysis of Selected Developed and Developing Economies," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 57(1), pages 27-44.
    4. Tilman Santarius & Johanna Pohl & Steffen Lange, 2020. "Digitalization and the Decoupling Debate: Can ICT Help to Reduce Environmental Impacts While the Economy Keeps Growing?," Sustainability, MDPI, vol. 12(18), pages 1-20, September.
    5. Liang, Huijun & Shi, Changkuan & Abid, Nabila & Yu, Yanliang, 2023. "Are digitalization and human development discarding the resource curse in emerging economies?," Resources Policy, Elsevier, vol. 85(PB).
    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. Mohamed Kossaï & Patrick Piget, 2012. "Utilisation des technologies de l'information et des communications (TIC) et performance économique des PME Tunisiennes :une étude économétrique," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 55(3), pages 305-328.
    8. Yongfei Li & Sang-Gun Lee & Myungjai Kong, 2019. "The industrial impact and competitive advantage of China’s ICT industry," Service Business, Springer;Pan-Pacific Business Association, vol. 13(1), pages 101-127, March.
    9. Chinie Alexandra Catalina, 2019. "Assessing the influence of Information and Communication Technologies on energy productivity," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 13(1), pages 515-527, May.

    More about this item


    Information and Communication Technology (ICT); Innovation in Services; Organisational Change; Firm Growth;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    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:tik:inowpp:20070531. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: H&kon Normann (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.