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Informational mobility and productivity: Finnish evidence 

Authors: Mika Maliranta a; Petri Rouvinen a
Affiliation:   a ETLA, The Research Institute of the Finnish Economy, Helsinki, Finland
DOI: 10.1080/10438590500418935
Publication Frequency: 8 issues per year
Published in: journal Economics of Innovation and New Technology, Volume 15, Issue 6 September 2006 , pages 605 - 616
Subject: Economics;
Formats available: HTML (English) : PDF (English)
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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: Productivity; Information and communication technology; Local area network; Mobility; Portability; Wireless
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