4.3 Article

INFORMATIONAL MOBILITY AND PRODUCTIVITY: FINNISH EVIDENCE

Journal

ECONOMICS OF INNOVATION AND NEW TECHNOLOGY
Volume 15, Issue 6, Pages 605-616

Publisher

ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/10438590500418935

Keywords

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

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Funding

  1. Tekes within the Research Programme for Advanced Technology Policy (ProAct)
  2. Academy of Finland
  3. Yrjo Jahnsson Foundation

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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.

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