Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/129665
Authors: 
Edquist, Harald
Henrekson, Magnus
Year of Publication: 
2016
Series/Report no.: 
IFN Working Paper 1108
Abstract: 
We analyze the effect of ICT and R&D on total factor productivity (TFP) growth across different industries in Sweden. R&D alone is significantly associated with contemporaneous TFP growth, thus exhibiting spillover effects. Although there is no significant short-run association between ICT and TFP, we find a positive association with a lag of seven to eight years. Thus, spillovers from R&D affect TFP much faster than spillovers from ICT-investments. We also divide ICT capital into hardware and software capital. To our knowledge, this distinction has not been made in any previous study analyzing TFP at the industry level. The results show that lagged hardware capital services growth is significantly associated with TFP growth. Hence, investments complementary to hardware are needed to reap the long-run TFP effects from reorganizing production.
Subjects: 
ICT
R&D
Spillovers
Total factor productivity
Panel data analysis
JEL: 
L16
O33
O47
Document Type: 
Working Paper

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