ICT as General Purpose Technologies. A Microeconometric Investigation on Italian Firms

The impact of ICTs on total factor productivity (TFP) is analysed under the hypothesis that a greater use of ICT may help firms to increase their efficiency. ICTs are considered as general purpose technologies (GPT) i.e. drastic technological innovations that are characterized by pervasiveness, technological dynamism and innovative complementarities. The paper concerns a micro-econometric analysis of Italian manufacturing firms using the data of two surveys carried out by Mediocredito Centrale-Capitalia. The impact of ICTs on Italian firms’ total factor productivity is analysed under the assumption that ICTs positively influence the TFP directly through investments, and indirectly through the new composition of inputs required by ICTs to fully exploit their benefits. Estimated results confirm that either ICT investments or the complementary factors have a positive influence on firm’s TFP. We have also found that firms that invest in ICT are able to reach higher level of efficiency than firms that do not.