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Economics of Innovation and New Technology

Volume 15, Issue 6, 2006

Informational mobility and productivity: Finnish evidence

Informational mobility and productivity: Finnish evidence

DOI:
10.1080/10438590500418935
Mika Malirantaa & Petri Rouvinena*

pages 605-616

Available online: 25 Jan 2007

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

 

Details

  • Available online: 25 Jan 2007

Author affiliations

  • a ETLA, The Research Institute of the Finnish Economy, Lönnrotinkatu 4 B, FI-00120, Helsinki, Finland

Librarians

Taylor & Francis Group