ICT and Economic Growth
Evidence from OECD countries, industries and firms

This report examines the impacts of ICT on business performance and the policies that can help seize its benefits. It argues that ICT remains an important technology for the years ahead, as ICT networks have now spread throughout the economy. What counts now is how the technology should be made to work.
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ICT and Firm-level Performance
This chapter provides evidence on the contribution of ICT use to business performance, based on detailed firm-level studies. It demonstrates that the use of ICT indeed contributes to improved business performance, but only when it is complemented by other investments and actions at the firm level, such as changes in the organisation of work and changes in workers skills. The chapter also shows that ICT is no panacea; investment in ICT does not compensate for poor management, lack of skills, lack of competition, or a low ability to innovate. Not all firms will therefore succeed in generating returns from their ICT investments; many will fail. In addition, drawing the benefits from ICT investment takes time. Moreover, there are important cross-country differences in firms’ use of ICT. Firms in the United States are characterised by a much higher degree of experimentation in their use of ICT than European firms; they take higher risks and opt for potentially higher outcomes...
Also available in: French
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