Informational mobility and productivity: Finnish evidence

Authors: Maliranta, Mika; Rouvinen, Petri

Source: Economics of Innovation and New Technology, Volume 15, Number 6, September 2006 , pp. 605-616(12)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

The labor productivity effects of portability and connectivity of information and communication technology (ICT) are studied with Finnish firm-level data. It is found that a computer with only processing and storage capabilities boosts labor productivity by 9% (corresponding to 5% output elasticity), portability by 32%, wireline connectivity by 14%, and wireless connectivity by 6%. The findings are in line with previous literature and comparisons to ICT costs suggest that firms equate marginal costs and returns. Although increasing ICT penetration can no longer be a major source of productivity growth in developed economies, the relatively new characteristics studied can.

Keywords: Productivity; Information and communication technology; Local area network; Mobility; Portability; Wireless

Document Type: Research article

DOI: http://dx.doi.org/10.1080/10438590500418935

Affiliations: 1: ETLA, The Research Institute of the Finnish Economy, Lönnrotinkatu 4 B, FI-00120, Helsinki, Finland

Publication date: 2006-09-01

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