$ 0.40 of output per annum. Regarding the quality adjustment problem,
they found weak correlation between ICT and quality changes in labor. ICT productivity is about eight times greater than that of non-ICT investment.
Interpretation of the magnitude of theirresearch results refers to gross and not net investment. Depreciation without beingconsidered could lead to a downward bias in the results.High-innovative firms have, in fact, an ICT coefficient of 2.0. Although the differencein group coefficients is wide, it seems that it is the low-REP and high-INNO group thatstrongly determines overall low-replacing group ICT productivity.
The low-REP and low-INNO group ICT investment share in total output is less than half that of itscorresponding low-REP and high-INNO counterpart
It was found out in the paper that
improvements in the workforce through a higher demand for more educated labour have a positive impact on productivity. This mayexplain the low coefficient in the highly innovative firms
While for ‘standard’investment skills do not play a paramount role and firms have high productivity, forinnovative investment, where complementing workers’ ability is crucial, the problememerges consistently.
Capital renewal is not the best strategy if skills are not complemented properly
In spite of its lower importance, ICT investment accounts for arelevant share of output growth when compared to non-ICT investment.
This paper is a small contribution towards understanding the link between ICTproductivity and firms’ investment behaviour. The findings they reached by this papercan pave the way ahead for the other researchers to go deeply into finding therelationship between the ICT productivity and firm investment. In their conclusion, theytold that when investment is mainly guided by replacement, the average firm behavesnotably worse than the others.
Nowadays ICT is becoming as one of the main part in our life and in manyindustrialized countries. By spending millions of dollars in IT, many countries try toachieve significant economic growth and better living environment. We can see recentempirical studies which show a positive and significant relationship between growth inICT (IT) investment and growth in national economic performance. As a last part of this