ICT spillovers, absorptive capacity and productivity performance

Rincon, Ana, Vecchi, Michela ORCID: https://orcid.org/0000-0002-0129-6769 and Venturini, Francesco (2012) ICT spillovers, absorptive capacity and productivity performance. Quaderni del Dipartimento di Economia, Finanza e Statistica, 103 . ISSN 1825-0211 [Article]

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Abstract

We analyse the impact of ICT spillovers on productivity in the uptake of the new technology using company data for the U.S. We account for inter- and intra-industry spillovers and assess the role played by firm’s absorptive capacity. Our results show that intra-industry ICT spillovers have a contemporaneous negative effect that turns positive 5 years after the initial investment. By contrast, inter-industry spillovers are important both in the short and in the long run. In the short run, companies’ innovative effort is complementary to ICT spillovers, but such complementarity disappears with the more pervasive adoption and diffusion of the technology.

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