The expansion of ICT has been a major driver of productivity and output growth in OECD countries. We take a look at the aggregate and sectoral dynamics of selected countries. Productivity growth is strongly linked to ICT-producing industries on the one hand and to ICT-using sectors on the other. Germany seems to suffer from underinvestment in both IT and software. As regards sectoral expansion patterns, some of Germany's key sectors have problems in fully exploiting the benefits of ICT. Interesting findings from Australia, the US and Spain suggest that both firms and government underestimate the long-term benefits of investing in ICT.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Australian Government (2004), ICT Use and Productivity: A Synthesis from Studies of Australian Firms, Canberra, mimeo
Audretsch D, Welfens PJJ (2002), The New Economy and Economic Growth in the US and Europe, Heidelberg and New York: Springer
Colecchia A, Schreyer P (2002), ICT investment and economic growth in the 90s: is the United States a Unique Case?, Review of Economic Dynamics, 5, 408-442
Crafts N, Mills TC (2005), TFP Growth in British and German Manufacturing, 1950-1996, Economic Journal, Vol. 115, 649-670
Daly M (2002), Riding the IT Wave: Surging Productivity Growth in the West, FRBSF Economic Letter, No. 2002-34; 1-3, San Francisco
Denis C, Mcmorrow K, Röger W, Veugelers R (2005), The Lisbon Strategy and the EU’s Structural Productivity Problem. European Economy: Economic Papers No. 221, Brussels: European Commission
EITO (2002), European Information Technology Observatory
Gordon R (2004), Why was Europe left at the station when America’s productivity locomotive departed?, CEPR Discussion Paper 4416
Hernando I, Nunez S (2004), The Contribution of ICT to Economic Activity: A Growth Accounting Exercise with Spanish FirmLevel Data, Investigaciones Economicas, Vol. 28, 315-348
Ho MS, Jorgenson DW (1999), The Quality of the US Work Force, 1948-95, Harvard University, mimeo
Inklaar R, O’Mahony M, Timmer M (2003), ICT and Europe’s Productivity Performance: Industry Level Growth Accounting Comparisons with the United States. Groningen Growth and Development Centre, Research Memorandum GD-68
Jorgenson DW, Stiroh K (2000), Raising the speed limit: U.S. economic growth in the information age, Brookings Papers on Economics Activity (2000), U.S. economic growth and development at industry level, American Economic Review, Vol. 90, No. 2
Jorgenson DW, Ho MS, Stiroh KJ (2002), Growth of US Industries and Investments in Information Technology and Higher Education, Harvard University, mimeo
Melka J, Mayman L, Zignago S, Mulder N (2003), Skills, Technology and Growth. Is ICT the Key to Success? Part I, CEPII, Paris, mimeo
Oliner S, Sichel D. (2002), Information Technology and Productivity: Where Are We Now And Where Are We Going?, Federal Reserve Boards FEDS Paper 2002-29 http://www.federalreserve. gov/pubs/feds/2002/200229/200229abs.html
OECD (2002), Measuring the Information Economy, Paris
OECD (2003a), ICT and Economic Growth: Evidence from OECD Countries, Industries and Firms, Paris
OECD (2003b), The Sources of Economic Growth in OECD Countries, Paris
OECD (2003c), Meeting of the OECD Council at Ministerial Level. Seizing the Benefits of ICT in a Digital Economy, Paris
Roeger W (1995), Can Imperfect Competition Explain the Difference Between Primal and Dual Productivity Measures? Estimates for US Manufacturing, Journal of Political Economy, Vol. 103 (2), 316-330
Stiroh K (2001), What drives productivity growth?, Federal Reserve Bank of New York, Economic Policy Review, 7, 37-59
Van Ark B, Piatkowski M. (2004), Productivity, Innovation and ICT in Old and New Europe, International Economics and Economic Policy, Vol. 1, Issue 2+3, 215-246
Van Ark B, Inklaar R, McGuekin (2003), The Contribution of ICTProducing and ICT-Using Industries to Productivity Growth: A Comparison of Canada, Europe and the United States
Vieweg HG et al (2005), Stand und Perspektiven der “New Economy” in ausgewählten Mitgliedsstaaten der EU aus deutscher Sicht, IFO-Beiträge zur Wirtschaftsforschung No. 19, Munich
Welfens PJJ, Ponder JK (2003), Digital EU Eastern Enlargement, EIIW Discussion Paper No. 109, University of Wuppertal
Welfens PJJ, Jungmittag A (2002), Europäische Telekomliberalisierung und Außenhandel: Theorie, Gravitationsansatz und Implikationen. Jahrbücher für Nationalökonomie und Statistik 222: 98-111
Welfens PJJ, Zoche P, Jungmittag A, et al, (2004), Internetwirtschaft 2010, Heidelberg: Springer
Welfens PJJ, Jungmittag A, Vogelsang M (2005), Innovation, Regulierung und Wirtschaftswachstum in Digitalen Marktwirtschaften: Nationale und regionale Perspektiven. Study for the Ministry for Science and Research in the State of North-Rhine Westfalia, mimeo
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2008 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Welfens, P.J.J. (2008). ICT – productivity and economic growth in Europe. In: Welfens, P.J.J., Walther-Klaus, E. (eds) Digital Excellence. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-72621-0_3
Download citation
DOI: https://doi.org/10.1007/978-3-540-72621-0_3
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-72620-3
Online ISBN: 978-3-540-72621-0
eBook Packages: Business and EconomicsEconomics and Finance (R0)