The dynamic impact of ICT spillovers on companies' productivity performance

Publication date: 29 May 2004 | Publication type: NIESR Discussion Paper | NIESR Author(s): Rincon-Aznar, A; Vecchi, M | JEL Classification: C23, D24, D62 | NIESR Discussion Paper Number: 245

Using company account data for the US and four European countries this paper analyses the impact of ICT spillovers on companies' performance. We use different definitions of spillovers to account for inter and intra-industry spillover effects, as well as assessing the presence of spillovers from the US to Europe. We also look at the possibility that spillovers might take some time to materialise, by comparing their short and long run impact. Our results show that ICT spillovers affect productivity differently in the US and in Europe in the short run but in the long run such differences are less profound.

Keyword tags: 
R&D and ICT capital, dynamic spillovers, panel unit root tests, panel cointegration tests