| Abstract |
Technical change has led to significant improvements in productivity since the mid-90s in a number of OECD economies, most especially the United States of America. Most explanations of this increase highlight the wave of innovation in computing and communications that marked the last decade. This encapsulates a number of complementary phenomena: growth in telecommunications infrastructure, in information technology itself comprising the hardware of PCs and PC networks and associated software applications as well as, most recently, the growth in networked connectivity and transactions through the Internet. In short, capital deepening related to information technology capital coupled with efficiency improvements in the production of computing technology appear to be important drivers of productivity improvement. Parallel to this there have been substantial declines in the real price of ICT. To the extent that these are general purpose technologies, demand for them should remain highly elastic. Further, if such technology continues to earn the same rate of return as other capital, then labour productivity growth should also remain strong.
The focus of the study is to understand the factors at the level of the firm that guide adoption of ICT and the implications for working and commercial practices, for the level and structure of employment, and for relative returns to types of workers. It would also analyse the extent to which the four broad set of factors act as constraints on ICT adoption at the level of the firm. Field work is being done in India and Brazil. Data from these surveys would be analysed in the context of the experience of OECD countries.
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