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An International perspective on the productivity paradox – by Alain ...

An International perspective on the productivity paradox – by Alain ...

percentage

percentage point1980198119821983198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007ICT capital is considered an important driver ofinnovation in services3Investments in ICT capital as share of GDPThe gap between NZL and selected countries210-1AUSCANSWEUSADNK-2-3ICT investment has generally been low compared to other countries(except CAN) even though NZL has narrowed the gap in the 2000s22

Organisational capital is key to make the best ofICT investment: reallocation within firmsAverage management quality score in the manufacturingsector; selected countriesNotes: The overall management score is an average of responses to 18 survey questions that are designed to reveal the extent to whichfirms: i) monitor what goes on inside the firm and use this information for continuous improvement ii) set targets and track outcomes;and iii) effectively utilise incentive structures (e.g. promote and rewarding employees based on performance). The estimates in the rightpanel are calculated from the difference in management score between each country and the United States and the estimated coefficienton the management score term in a firm level regression of sales on management scores, capital and employment. The sample is based onmedium-sized firms, ranging from 50 to 10 000 employees.Source: ong>Anong>drews, D. and C. Criscuolo (2013), “Knowledge-Based Capital, Innovation and Resource Allocation”, OECDEconomics Department Working Papers, No. 104623

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