In this paper, we present an analysis of the production process for some OECD countries and consider the new technology of the ICT capital as driver of growth. In doing so, the production function approach adopted allows to disentangle the externalities not exploited. In line with the general-purpose technology theory, we attribute such externalities to the new technology ICT capital. Business services are a relevant vehicle to use better the innovative capital embedded in the production process. We develop and implement a methodology for the evaluation of the effect on growth related to the interaction between innovative capital and business services. The main conclusion of the paper is that the potentials of new technologies in use are almost completely exploited during the productive process. Then, even if a competitive solution is viable, there are small, though possible, margins to improve a sustainable European growth in the long run linked to externalities. We also point out some conclusions on the capital and labor shares showing that the latter is “too small” both in the long and short run.

ICT Stochastic Externalities, Technology Innovation and Business Services: Is There an Evidence of Missed Opportunity Growth? / Maggi, Bernardo. - In: ECONOMICS OF INNOVATION AND NEW TECHNOLOGY. - ISSN 1043-8599. - ELETTRONICO. - 28:(2019), pp. 265-278.

ICT Stochastic Externalities, Technology Innovation and Business Services: Is There an Evidence of Missed Opportunity Growth?

Maggi Bernardo
2019

Abstract

In this paper, we present an analysis of the production process for some OECD countries and consider the new technology of the ICT capital as driver of growth. In doing so, the production function approach adopted allows to disentangle the externalities not exploited. In line with the general-purpose technology theory, we attribute such externalities to the new technology ICT capital. Business services are a relevant vehicle to use better the innovative capital embedded in the production process. We develop and implement a methodology for the evaluation of the effect on growth related to the interaction between innovative capital and business services. The main conclusion of the paper is that the potentials of new technologies in use are almost completely exploited during the productive process. Then, even if a competitive solution is viable, there are small, though possible, margins to improve a sustainable European growth in the long run linked to externalities. We also point out some conclusions on the capital and labor shares showing that the latter is “too small” both in the long and short run.
2019
new technology; ICT externalities; random coefficients; business services; panel data models; labor productivity growth
01 Pubblicazione su rivista::01a Articolo in rivista
ICT Stochastic Externalities, Technology Innovation and Business Services: Is There an Evidence of Missed Opportunity Growth? / Maggi, Bernardo. - In: ECONOMICS OF INNOVATION AND NEW TECHNOLOGY. - ISSN 1043-8599. - ELETTRONICO. - 28:(2019), pp. 265-278.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11573/1111518
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