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ICT, Innovation and Business Performance in Services: Evidence for Germany and the Netherlands

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  • van der Wiel, Henry
  • van Leeuwen, George
  • Hempell, Thomas

Abstract

Using panel data for German and Dutch firms from the services sector, this paper analyses the importance of ICT capital deepening and innovation for productivity. We employ a model that takes into account that innovation and ICT use may be complementary. The results show that the contribution of ICT capital deepening is raised when firms combine ICT use and technological innovations on a more permanent basis. Moreover, the joint impact of ICT use and permanent technological innovation on productivity appears to be of the same order of magnitude in the two countries. However, the direct impacts of innovation on multi-factor productivity seems to be more robust for Germany than for the Netherlands.

Suggested Citation

  • 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.
  • Handle: RePEc:zbw:zewdip:1607
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kox, Henk L.M. & Leeuwen, George van & Wiel, Henry van der, 2010. "Competitive, but too small - productivity and entry-exit determinants in European business services," MPRA Paper 24389, University Library of Munich, Germany.
    2. Enrico Saltari, 2012. "The role of ICT and Business Services in Italy," Working Papers 152, University of Rome La Sapienza, Department of Public Economics.
    3. Henry van der Wiel & George van Leeuwen, 2003. "Do ICT spillovers matter; evidence from Dutch firm-level data," CPB Discussion Paper 26, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Gehringer, Agnieszka, 2015. "Uneven effects of financial liberalization on productivity growth in the EU: Evidence from a dynamic panel investigation," International Journal of Production Economics, Elsevier, vol. 159(C), pages 334-346.
    5. Spyros Arvanitis & Euripidis N. Loukis, 2016. "Investigating the effects of ICT on innovation and performance of European hospitals: an exploratory study," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 17(4), pages 403-418, May.
    6. Sadaf Bashir & Uwe Matzat & Bert Sadowski, 2014. "The Adoption of Information and Communication Technologies in the Design Sector and their impact on Firm Performance: Evidence from the Dutch Design Sector," Working Papers 14-01, Eindhoven Center for Innovation Studies, revised Feb 2014.
    7. B. Atrostic, 2008. "Measuring U.S. innovative activity: business data at the U.S. Census Bureau," The Journal of Technology Transfer, Springer, vol. 33(2), pages 153-171, April.
    8. 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.
    9. Wojciech Szewczyk & Anna Sabadash, 2013. "Macroeconomic Modelling of Public Expenditures on Research and Development in Information and Communication Technologies," JRC Working Papers JRC82943, Joint Research Centre (Seville site).
    10. Fiammetta Rossetti, 2017. "The Business Demography of the ICT Sector in Europe," JRC Working Papers JRC106589, Joint Research Centre (Seville site).
    11. Hans-Günther Vieweg & Thomas Fuchs & Reinhard Hild & Andreas Kuhlmann & Stefan Lachenmaier & Michael Reinhard & Uwe Christian Täger & Sebastian de Ramon & Jan-Egbert Sturm, 2005. "Stand und Perspektiven der "New Economy" in ausgewählten Mitgliedstaaten der EU aus deutscher Sicht," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 19.

    More about this item

    Keywords

    Productivity; Information and Communication Technologies; Innovation; Services; Panel Data;

    JEL classification:

    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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