ICT - Productivity and economic growth in Europe

Abstract

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. © 2008 Springer-Verlag Berlin Heidelberg.