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Barriers to investment in ICT

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Abstract:

This paper studies the complementarity between investment in information and communication technologies (ICT) and the related investment in human and organizational capital. Using firm-level data taken from a large sample of Italian manufacturing firms, an ICT marginal product much higher than its user cost is estimated. It is then argued that missing complementary investments may have acted as barriers to investment in ICT. Results support the conjecture that the marginal product excess over the user cost is due to those firms that did not complement their ICT investment with an increase in the human capital of their labour force and with a reorganization of the workplace.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/0003684042000270031

Publication date: November 1, 2004

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