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ICT Capital and Services Complementarities. The Italian Evidence

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  • Francesco Quatraro

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

Abstract

This article investigates whether Information and Communication Technologies (ICTs) hardware and services play a complementary role in boosting economic growth. The main argument is that investments in ICT 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 and on the other hand complementary investments in ICT 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 ICT 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 ICT services.

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  • Francesco Quatraro, 2011. "ICT Capital and Services Complementarities. The Italian Evidence," Post-Print halshs-00727611, HAL.
    • Handle: RePEc:hal:journl:halshs-00727611
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00727611
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    1. Antonelli, Cristiano & Krafft, Jackie & Quatraro, Francesco, 2010. "Recombinant knowledge and growth: The case of ICTs," Structural Change and Economic Dynamics, Elsevier, vol. 21(1), pages 50-69, March.
    2. Jackie Krafft & Francesco Quatraro & Pier Paolo Saviotti, 2014. "The Dynamics of Knowledge-intensive Sectors' Knowledge Base: Evidence from Biotechnology and Telecommunications," Industry and Innovation, Taylor & Francis Journals, vol. 21(3), pages 215-242, April.
    3. Gilli, Marianna & Mancinelli, Susanna & Mazzanti, Massimiliano, 2014. "Innovation complementarity and environmental productivity effects: Reality or delusion? Evidence from the EU," Ecological Economics, Elsevier, vol. 103(C), pages 56-67.
    4. Bashir, Sadaf & Sadowski, B. M., 2014. "General purpose technologies: A survey, a critique and future research directions," 25th European Regional ITS Conference, Brussels 2014 101443, International Telecommunications Society (ITS).

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