Download Computers and Productivity: How Firms Make a General Purpose by Thomas Hempell PDF

By Thomas Hempell

Information and communique applied sciences (ICTs) create potentials for enormous productiveness earnings and for larger financial progress. in spite of the fact that, ICTs additionally pose diverse demanding situations to organizations that allows you to make the most of those potentials. Highlighting the significance of recommendations, firm-sponsored education, and recruitment of high-skilled staff, this monograph analyses why and to what volume organisations range of their functions to make ICT paintings productively. The paintings additionally includes a close dialogue of monetary concept referring to ICT use and complementary company options. moreover it offers a complete remedy of varied methodological concerns about the size of firm-level productiveness in econometric analyses.

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Similarly, as expected, exporting firms spend significantly more money on ICT and have a higher fraction of workers with access to the Internet than non-exporters do. Young firms, however, are not more ICT-intensive than old firms are. On the contrary, older firms spend significantly more on ICT overall than younger firms do, as the coefficient of LN AGE in the first specification shows. One explanation for this somewhat unexpected result is perhaps that older firms find it easier to attract sources for financing (uncertain) ICT projects than young firms do.

29 These data were collected in computer-assisted telephone interviews (CATI) with 4450 representatively chosen firms in the manufacturing sector and selected services industries with 5 and more employees. Based on these data, the subsequent two subsections confront some of the previously discussed GPT properties of ICT with empirical evidence on ICT use and strategies of firms in Germany. In the first part, I discuss the overall importance of ICT in Germany as compared to other industrialised countries and provide figures on the diffusion of ICT as well as on the underlying aims and hampering factors as perceived by firms in Germany.

1 to this chapter. Beyond correlations in the demand for choice variables, complementarities imply a second result: the complementarities should also be observable directly in the production outcomes. 5) holds with strict inequality), the productivity gains that are due to complementarities can be captured by including an interaction term between the hypothesised complements xi · xj in the econometric specification of the production function. To illustrate this, consider the case where two complementary activities are measured by dummy variables x1 , x2 , with xi = 1 if the corresponding activity is carried out by the corresponding firm and zero otherwise.

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