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TFP, ICT and absorptive capacities: micro-level evidence from Colombia

Author

Listed:
  • Juan Carlos Castillo

    (University of Campinas)

  • Nicholas S. Vonortas

    (The George Washington University
    University of Campinas)

Abstract

This paper explores ICT investment and different types of absorptive capacity (realized and potential) as determinants of micro-level TFP in Colombia from 2008 to 2018. Our empirical output suggests that productivity is positively affected by ICT expenditures as well as by the presence of those IT-related potential absorptive capacities that strengthen knowledge acquisition and assimilation inside the plant: online transactions (e-commerce) and the use of network communication platforms(e-communication). Realized absorptive capacities such as R&D cooperation and marketing expenditures (signaling firms’ ability to exploit and transform available information) are found to only induce TFP growth if combined with appropriate IT capabilities: R&D collaboration paired with e-communication and, marketing strategies connected with e-commerce. These results remain robust to various productivity indicators, issues of reverse causality (TFP-ICT link) and even to different IT-related proxies.

Suggested Citation

  • Juan Carlos Castillo & Nicholas S. Vonortas, 2024. "TFP, ICT and absorptive capacities: micro-level evidence from Colombia," The Journal of Technology Transfer, Springer, vol. 49(4), pages 1287-1302, August.
    • Handle: RePEc:kap:jtecht:v:49:y:2024:i:4:d:10.1007_s10961-023-10042-w
    DOI: 10.1007/s10961-023-10042-w
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    More about this item

    Keywords

    Absorptive capacity; Firm-level; ICT; TFP; Colombia;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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