ICT Capital and Services Complementarities. The Italian Evidence

ICT Capital and Services Complementarities. The Italian Evidence
Document type
Working Paper
Author(s)
Quatraro, Francesco
Publisher
Manchester Business School
Date of publication
29 March 2010
Subject(s)
Trends: economic, social and technology trends affecting business
Collection
Business and management
Material type
Reports

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The main argument is that investments in ICTs fixed capital are a
necessary but not sufficient condition leading to productivity gains, above all in late adopter
countries. Their effective implementation indeed requires on the one hand a changing
economic structure characterized by a growing weight of service sectors, on the other hand
complementary investments in ICTs services, directed to ease the integration of the new
technologies within firms’ boundaries. The analysis is conducted on a late-industrialized
country like Italy, and shows that in lagging countries the weak impact of ICTs adoption is
the result of three converging forces: relatively high share of manufacturing sectors, low
adoption levels of ICTs in traditional manufacturing sectors, inadequate investments in ICTs
services.

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