Innovation and Productivity in Services and Manufacturing: The Role of ICT Investment
Several studies have highlighted information and communications technology (ICT) as a driver of firm productivity in developed countries. However, evidence of the impacts of ICT on services and manufacturing, particularly in developing countries, is scarce. This paper analyzes the determinants of investment in ICT at the firm level and how investments in ICT ultimately affect innovation and productivity in Uruguayan service firms compared to manufacturing firms. The results show that investments in ICT are subject to economies of scale to a greater degree than other types of investments. They are also important for product or process innovations in the service sector. The absence of investment in ICT conspires against non-technological (e.g., organizational or marketing) innovations. ICT and other innovation investments are positively associated with productivity in services, but only ICT affects productivity in manufacturing. The absence of investment in ICT is associated with lower levels of productivity.
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Format: | Working Papers biblioteca |
Language: | English |
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Inter-American Development Bank
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Subjects: | Information and Communication Technology, Investment, Service Industry, Productivity, Innovation, D22 - Firm Behavior: Empirical Analysis, O31 - Innovation and Invention: Processes and Incentives, O32 - Management of Technological Innovation and R&D, O38 - Government Policy, |
Online Access: | http://dx.doi.org/10.18235/0011715 https://publications.iadb.org/en/innovation-and-productivity-services-and-manufacturing-role-ict-investment |
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dig-bid-node-123852024-05-30T20:30:06ZInnovation and Productivity in Services and Manufacturing: The Role of ICT Investment 2015-12-22T00:00:00+0000 http://dx.doi.org/10.18235/0011715 https://publications.iadb.org/en/innovation-and-productivity-services-and-manufacturing-role-ict-investment Inter-American Development Bank Information and Communication Technology Investment Service Industry Productivity Innovation D22 - Firm Behavior: Empirical Analysis O31 - Innovation and Invention: Processes and Incentives O32 - Management of Technological Innovation and R&D O38 - Government Policy Several studies have highlighted information and communications technology (ICT) as a driver of firm productivity in developed countries. However, evidence of the impacts of ICT on services and manufacturing, particularly in developing countries, is scarce. This paper analyzes the determinants of investment in ICT at the firm level and how investments in ICT ultimately affect innovation and productivity in Uruguayan service firms compared to manufacturing firms. The results show that investments in ICT are subject to economies of scale to a greater degree than other types of investments. They are also important for product or process innovations in the service sector. The absence of investment in ICT conspires against non-technological (e.g., organizational or marketing) innovations. ICT and other innovation investments are positively associated with productivity in services, but only ICT affects productivity in manufacturing. The absence of investment in ICT is associated with lower levels of productivity. Inter-American Development Bank Diego Aboal Ezequiel Tacsir Working Papers application/pdf IDB Publications Uruguay en |
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Information and Communication Technology Investment Service Industry Productivity Innovation D22 - Firm Behavior: Empirical Analysis O31 - Innovation and Invention: Processes and Incentives O32 - Management of Technological Innovation and R&D O38 - Government Policy Information and Communication Technology Investment Service Industry Productivity Innovation D22 - Firm Behavior: Empirical Analysis O31 - Innovation and Invention: Processes and Incentives O32 - Management of Technological Innovation and R&D O38 - Government Policy |
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Information and Communication Technology Investment Service Industry Productivity Innovation D22 - Firm Behavior: Empirical Analysis O31 - Innovation and Invention: Processes and Incentives O32 - Management of Technological Innovation and R&D O38 - Government Policy Information and Communication Technology Investment Service Industry Productivity Innovation D22 - Firm Behavior: Empirical Analysis O31 - Innovation and Invention: Processes and Incentives O32 - Management of Technological Innovation and R&D O38 - Government Policy Inter-American Development Bank Innovation and Productivity in Services and Manufacturing: The Role of ICT Investment |
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Several studies have highlighted information and communications technology (ICT) as a driver of firm productivity in developed countries. However, evidence of the impacts of ICT on services and manufacturing, particularly in developing countries, is scarce. This paper analyzes the determinants of investment in ICT at the firm level and how investments in ICT ultimately affect innovation and productivity in Uruguayan service firms compared to manufacturing firms. The results show that investments in ICT are subject to economies of scale to a greater degree than other types of investments. They are also important for product or process innovations in the service sector. The absence of investment in ICT conspires against non-technological (e.g., organizational or marketing) innovations. ICT and other innovation investments are positively associated with productivity in services, but only ICT affects productivity in manufacturing. The absence of investment in ICT is associated with lower levels of productivity. |
author2 |
Diego Aboal |
author_facet |
Diego Aboal Inter-American Development Bank |
format |
Working Papers |
topic_facet |
Information and Communication Technology Investment Service Industry Productivity Innovation D22 - Firm Behavior: Empirical Analysis O31 - Innovation and Invention: Processes and Incentives O32 - Management of Technological Innovation and R&D O38 - Government Policy |
author |
Inter-American Development Bank |
author_sort |
Inter-American Development Bank |
title |
Innovation and Productivity in Services and Manufacturing: The Role of ICT Investment |
title_short |
Innovation and Productivity in Services and Manufacturing: The Role of ICT Investment |
title_full |
Innovation and Productivity in Services and Manufacturing: The Role of ICT Investment |
title_fullStr |
Innovation and Productivity in Services and Manufacturing: The Role of ICT Investment |
title_full_unstemmed |
Innovation and Productivity in Services and Manufacturing: The Role of ICT Investment |
title_sort |
innovation and productivity in services and manufacturing: the role of ict investment |
publisher |
Inter-American Development Bank |
url |
http://dx.doi.org/10.18235/0011715 https://publications.iadb.org/en/innovation-and-productivity-services-and-manufacturing-role-ict-investment |
work_keys_str_mv |
AT interamericandevelopmentbank innovationandproductivityinservicesandmanufacturingtheroleofictinvestment |
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1806237127869988864 |