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Title: Information Technology, Organisational Change and Productivity

Author(s): Gustavo Crespi, Chiara Criscuolo and Jonathan Haskel

Publication Date: February 2007

Keyword(s): information technology, organisational change and productivity growth

Programme Area(s): Labour Economics

Abstract: We examine the relationships between productivity growth, IT investment and organisational change (DO) using UK firm data. Consistent with the small number of other micro studies we find (a) IT appears to have high returns in a growth accounting sense when DO is omitted; when DO is included the IT returns are greatly reduced, (b) IT and DO interact in their effect on productivity growth, (c) non-IT investment and DO do not interact in their effect on productivity growth. Some new findings are (a) DO is affected by competition; (b) US-owned firms are much more likely to introduce DO relative to foreign owned firms who are more likely still relative to UK firms; (c) our predicted measured TFP growth slowdown for firms who are not doing DO and/or are in the early stages of IT investment compare well with the macro numbers documenting a UK measured TFP growth slowdown.

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Bibliographic Reference

Crespi, G, Criscuolo, C and Haskel, J. 2007. 'Information Technology, Organisational Change and Productivity'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=6105