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49102.2005.017-2006.128 - ICT IMPACTS - FINAL REPORT V2

49102.2005.017-2006.128 - ICT IMPACTS - FINAL REPORT V2

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 FINAL REPORT
Information Society: ICT impact assessment bylinking data from different sources
Grant Agreement Number – 49102.2005.017-2006.128
 August 2008 
 Authors
 Aarno Airaksinen
Statistics Finland 
  Andrea de Panizza
ISTAT, Italy and European Commission
Eric Bartelsman
(Professor) Vrije Universiteit Amsterdam, Tinbergen Institute and IZA
 Eva Hagsten
Statistics Sweden
 George van Leeuwen
Statistics Netherlands
 Mark Franklin
Office for National Statistics, UK 
 Mika Maliranta
Statistics Finland & The Research Institute of the Finnish Economy (ETLA)
 Patricia Kotnik
University of Ljubljana, Faculty of Economics
 Peter Stam
Office for National Statistics, UK 
 Petri Rouvinen
The Research Institute of the Finnish Economy (ETLA)
 Shikeb Farooqui
Office for National Statistics, UK 
 Simon Quantin
INSEE, France
Stefan Svanberg
Statistics Sweden
 Tony Clayton
Office for National Statistics, UK 
 Yoann Barbesol
INSEE, France
 With thanks and acknowledgement to Allessandra Nurra
ISTAT, Italy 
Brian Ring
CSO Ireland 
Chiara Criscuolo
London School of Economics, Centre for Economic Performance
Eugene van der Pijll
Statistics Netherlands
Gerolamo Giungato
ISTAT, Italy 
Hans-Olof Hagen
Statistics Sweden
Jonathan Haskel
(Professor) Queen Mary University of London
 Joseph Robjohns
Office for National Statistics, UK 
Martin Lundo
Statistics Denmark 
Martin Mana
Czech Statistical Office
Natalia Cherevichenko
Statistics Denmark 
 Nina Djahangiri
Statistics Austria
Ole-Petter Kordahl
Statistics Norway 
Oliver Bauer 
Federal Statistics Office, Germany 
 Ritchie McMahon
CSO Ireland 
 Stefan Bender 
Institute for Employment Research
Vaclav Kosina
Czech Statistical Office
 
We would like to thank all those who have supported and contributed to this project, not leastthe Information Society team at Eurostat. However, any errors or omissions are theresponsibility of the authors.
Disclaimer 
 All data in this report comply with statistical disclosure measures and standards throughout allproject member countries.Furthermore, data refer to experimental and provisional research datasets. They should notbe treated as - or compared to - any official national statistics.
 
Eurostat Agreement No. 49102.2005.017-2006.128 Contents
Chapter Page1. Recommendations, Summary Results and Conclusions
1
Tony Clayton
2. Introduction and Background
20
Tony Clayton
3. Methods and Data Sources
29
Mark Franklin
4. Describing the Data
40
Peter Stam
5. Properties of Linked Data Evidence from the ICT Impacts Project
68
Eric Bartelsman
6. Productivity and Core ICT Metrics at Firm Level
94
Mark FranklinShikeb Farooqui 
7. ICT Characteristics of Fast Growing Firms
120
Simon QuantinYoann Barbesol 
8. Employment, Skills and Information Technology
134
Eva HagstenPatricia Kotnik 
9. ICT Business Integration
149
Mark FranklinTony Clayton
10. ICT Investment and Productivity
163
George van LeeuwenShikeb Farooqui 
11. Offshoring
190
 Andrea de PanizzaEva HagstenPatricia Kotnik Simon QuantinStefan Svanberg Yoann Barbesol 
12. ICT, Innovation and Productivity
222
George van LeeuwenShikeb Farooqui 
13. IT Outsourcing in Finnish Business
240
 Aarno AiraksinenMika MalirantaPetri Rouvinen
14. From Micro to Macro
255
Eric Bartelsman
References
272
Appendix I – Project User guide
280
Peter Stam
 
Eurostat Agreement No. 49102.2005.017-2006.128 Chapter 1
Chapter 1Summary Results, Conclusions and Recommendations
Tony ClaytonUK Office for National Statistics
This chapter summarises the main analytical results of the project, uses them to drawconclusions from the new findings on Information and Communications Technology (ICT)impacts, alongside prior research, and sets out recommendations for action by Eurostat andNSIs. Where possible the full analytical evidence in subsequent chapters is referenced.
Section 1.1 Summary of Results
This section brings together the analytical findings from the project. The range of workcovers all the milestones set for the original contract (see Appendix A), and the developmentof new methodology. The results here derive from the following different types of analyticalwork:
at the most basic level, one-off studies of firm level productivity impact where only onecountry has the data to perform a specific piece of analysis (for example work fromFinland on ICT outsourcing).
several examples of groups of countries collaborating on micro data analysis for topicswhere all have similar (but not necessarily identical) firm level data which enable acommon analytical framework to be used and compared (eg Netherlands and UK on ICTinvestment, Sweden, France and Italy on offshoring, Sweden, Netherlands and UK oninnovation).
an encouraging range of firm level analysis using common metrics and commonanalytical code with identical data sources, either carried out by local researchers acrossmost countries direct from local datasets, or using the data created for the project andcentrally written code to run identical regression analysis, for all countries in the projectexcept Denmark and Slovenia.
construction of an extensive ‘metadata warehouse’, which is used to weight andaggregate ICT use, structural business and business register data from surveys in all 13countries in as comparable a way as is possible, producing distributed microdatadatasets (DMD); the aggregation process operates to produce estimates of complexindicators (constructed from more than one variable from a survey) as well as indicatorswhich depend on intersections between surveys; this metadata system can also be usedto generate datasets on a highly comparable basis for firm level regression analysiswithin countries.
industry / country level analysis of ICT impacts, using the large (and still under-explored)dataset produced by the distributed microdata (DMD) analysis system, where we have avery high level of confidence in the comparability of indicators, and on the ability to drawreliable comparisons between industries /countries and over time.The summary below presents results in terms of the key topics tackled in the study, anddraws on evidence from both firm level and DMD analysis as appropriate.
1

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