Top Banner
1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation and Development Paris, France US Department of Commerce Transforming Enterprise
19

1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

Dec 25, 2015

Download

Documents

Piers McDowell
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

1

Information and Communication Technologies (ICT) and the

Transformation of the Economy

Andrew Wyckoff and Dirk PilatOrganisation for Economic Co-operation and Development

Paris, France

US Department of Commerce Transforming Enterprise ConferenceWashington, DC 27 January 2003

Page 2: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

2

Diffusion of ICTDrawn from “Measuring the Information

Economy” 2002

www.oecd.org/sti/measuring-infoeconomy

Page 3: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

3

ICT investment has been uneven

0

5

10

15

20

25

30

1980 1990 2000

% of non-res. GFCF

Page 4: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

4

Recent ICT Investment: US

Source: US BEA, NIPA Tables.

Contributions to % change in quarterly real private fixed investment by type

-15

-10

-5

0

5

10

15

20

1995

-I

199

5-III

199

6-I

1996

-III

1997

-I

199

7-III

199

8-I

1998

-III

1999

-I

199

9-III

200

0-I

2000

-III

2001

-I

200

1-III

2002

-I

2002-

III

Structures

Non-ICT equipment

Information processing equipment + software

Page 5: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

5

Business Access to and Use of the Internet

0

20

40

60

80

100

%Businesses using the Internet

Businesses receiving orders over the Internet

Businesses ordering over the Internet

Page 6: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

6

Explaining differences in ICT diffusion and use across the OECD

Page 7: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

7

Skills: The availability of high-skilled workers is associated with higher investment in ICT

Luxembourg*

Finland

Spain

Austria

United Kingdom

Netherlands

BelgiumDenmark

Germany

Italy

Greece

United States

France

Sweden

0

1

2

3

4

5

6

0 1 2 3 4

Share of high-skilled ICT workers in total occupations

ICT

inve

stm

ent (

%G

DP

)

Correlation = 0.68T-statistic = 3.04

Page 8: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

8

Regulations: Employment protection legislation may limit required organisational change

Australia

Austria

Belgium

Canada

Denmark

Finland

FranceGermany Greece

Ireland

ItalyJapan

Netherlands

PortugalSpain

Sweden

United Kingdom

United States

0

5

10

15

20

25

30

35

0 1 2 3 4

Employment protection legislation index

ICT

inve

stm

ent (

%G

FCF)

Correlation = -0.61T-statistics = -3.07

Page 9: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

9

Co-invention: ICT investment is accompanied by further innovation in applications and software

Austria

Belgium

Denmark

France

Germany

GreeceIreland

Italy

Netherlands

PortugalSpain

Sweden

United Kingdom

Australia

Canada

Finland

Japan

United States

0

5

10

15

20

25

30

35

0 10 20 30 40 50

Share of ICT patents in total

ICT

inve

stm

en

t (%

GF

CF

)

Correlation = 0.73T-statistic = 4.21

Page 10: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

10

3 Perspectives on the impacts of ICT on performance

– Macroeconomic contribution of ICT investment to Output Growth;

– Industry Improvement of Labour Productivity;

– Competitive gains by individual firms.

Page 11: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

11

Contribution of ICT investment to business GDP

0.0

0.2

0.4

0.6

0.8

1.0

Contribution to growth of business GDP (%)

1990-95

1995-2000

Page 12: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

1224

Contribution to Productivity by ICT-Producing Manuf.

0.00

0.20

0.40

0.60

0.80

1.00

Contribution to labour productivity growth

(%)

1990-95

1996-2000

Page 13: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

13

Contribution to Productivity by ICT-using services

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Contribution to labour productivity growth

(%)1990-95 1996-2000

Countries where productivity growth deteriorated

Countries where productivity growth improved

Page 14: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

14

Micro-data Analysis

Page 15: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

15

Firm-level Canada

1.00

1.05

1.10

1.15

1.20

1.25

1.30

1.35

1.40

1.45

1.50

1 2 3 C1 C2 C3 C4

Technology group

Lab

ou

r p

rod

uct

ivit

y re

lati

ve t

o n

on

-use

rs

1988 1997

Source: Baldwin & Sabourin, 2002

Page 16: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

16

The sophistication of e-activity increases with experience in ICT use: UK

0

5

10

15

20

25

30

35

40

pre 1995 1995 1996 1997 1998 1999 2000

Year that company first started using ICT

Cu

rre

nt

lev

el o

f E

-ac

tiv

ity

Buy using E-commerceSell using E-commerce Buy & sell using E-commerce

Source: Clayton & Waldron, 2002

Page 17: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

17

The impacts of ICT differ across OECD countries

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Low/0 Low/Low High/0 Low/High High/Low High/High

Investment group (total/ICT)

Pro

du

cti

vit

y r

ela

tive t

o n

o i

nvestm

en

t

United States

Germany

Source: Haltiwanger, Jarimin & Schank, 2002.

Page 18: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

18

Stylised Facts Emerging from OECD Microdata Consortia

Human Capital Industrial Structure Organisational Change Ownership Change Innovation

Page 19: 1 Information and Communication Technologies (ICT) and the Transformation of the Economy Andrew Wyckoff and Dirk Pilat Organisation for Economic Co-operation.

19

Policy implications

The business environment matters……in particular, the level and nature of competition.

Investing in ICT is much more than hardware. It involves a constellation of complimentary investments.

ICT is both a tool for innovation.