TY - UNPB
T1 - The Return on Information Technology: Who Benefits Most?
AU - Konings, Jozef Gerard L
AU - Dhyne, Emmanuel
AU - Vanormelingen, Stijn
AU - Van den Bosch, Jeroen
PY - 2018
Y1 - 2018
N2 - Using a novel comprehensive data set of IT investment at the firm level, we find that a firm investing an additional euro in IT increases value added by 1 euro and 38 cents on average. This marginal product of IT investment increases with firm size and varies across sectors. IT explains about 10% of productivity dispersion across firms. While we find substantial returns of IT at the firm level, such returns are much lower at the aggregate level. This is due to underinvestment in IT (IT capital deepening is low) and misallocation of IT investments.
AB - Using a novel comprehensive data set of IT investment at the firm level, we find that a firm investing an additional euro in IT increases value added by 1 euro and 38 cents on average. This marginal product of IT investment increases with firm size and varies across sectors. IT explains about 10% of productivity dispersion across firms. While we find substantial returns of IT at the firm level, such returns are much lower at the aggregate level. This is due to underinvestment in IT (IT capital deepening is low) and misallocation of IT investments.
M3 - Discussion paper
T3 - Centre for Economic Policy Research
BT - The Return on Information Technology: Who Benefits Most?
ER -