Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108762
Authors: 
Fabritz, Nadine
Year of Publication: 
2015
Series/Report no.: 
Ifo Working Paper 195
Abstract: 
Using data from a survey of German manufacturing firms, this paper empirically tests the hypothesis that investment in ICT enables product innovation at the firm level. The empirical approach employs a value-added model, which controls for time-invariant firm characteristics. We instrument with exogenous impulses that affect firms’ decision to invest in ICT to account for remaining endogeneity that arises due to the fact that firms may decide to innovate and invest in ICT simultaneously. In addition, we employ matching methods to corroborate the results. We find consistent evidence that ICT investment increases firms’ product innovations.
Subjects: 
Innovation
information and communication technology
manufacturing sector
JEL: 
O14
O31
Document Type: 
Working Paper

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