ICT, Consulting and Innovative Capabilities

This paper analyzes the impact of the decision to contract ICT consulting on firms' innovative incentives. The paper develops a theoretical model and estimates some of its implications for a sample of German firms. In particular, the paper estimates the average treatment effect of the decision to contract ICT consulting on firms' innovative incentives, considering the role of endogeneity and unobserved heterogeneity in the correlated random coefficient model. The paper shows three main results. First, the theoretical model shows that ICT consulting increases aggregate incentives to innovate. This result is not corroborated by the empirical application. ICT consulting does not affect neither the probability of introducing product or process innovations nor the number of such innovations. The empirical results show that ICT consulting affects negatively the value of the introduced product and processes innovation. Second, the theoretical model suggests that low productivity firms might evidence either lower, unaffected or higher incentives to innovate. The empirical application shows that low productivity firms exhibit higher incentives to innovate. Third, although the theoretical analysis shows that the lower the productivity level the more the incentives to contract ICT consulting, the empirical evidence is inconclusive on this matter. These results suggest that firms optimize their innovations portfolio through ICT consulting. --ICT Consulting,Competition and Innovation

Technology Use, Organisational Flexibility and Innovation: Evidence for Germany

This paper investigates to what extent the usage of information and communication technology (ICT) fosters innovation activities by facilitating more flexible organisational structures in firms. We distinguish between functional flexibility (the ability of workers to co-operate and take decentralised decisions) and numerical flexibility (the reduction of fixed costs, mainly due to outsourcing business processes). Our results from a large and representative data set of firms in Germany show that ICT use is associated with an increase in both types of flexibility but the implications for innovation activities differ. Functional flexibility is strongly positively associated with product innovations. In contrast, numerical flexibility allows firms to ?buy? innovations in the short run, but reduces innovative capacity in the longer run. --ICT usage,flexibility,innovations

Innovation, R&D and Productivity in the Costa Rican ICT Sector: A Case Study

This paper addresses the relationships between innovation, research and development (R&D) and productivity in domestic ICT firms in Costa Rica. Factors considered were the types of innovation outputs produced by domestic ICT firms, the relative importance of innovation inputs, the impacts of innovation on firm productivity, the protection of innovations, and impediments to innovation. While most firms engaged in all types of output and input innovations, they appear to be driven by retaining or increasing market share rather than increasing productivity. Half of firms do not formally protect the intellectual property created by their innovations, are not familiar with methods for protecting innovation or the availability of government grants for such purposes, and face barriers associated with the Costa Rican Patent Office. Other impediments include lack of knowledge about financial resources available and scarcity of human resources. There is also evidence of knowledge spillovers through worker mobility from multinationals operating in Costa Rica to domestic ICT firms.Research and development, Information communications technology, Innovation, Costa Rica

Thought for Food: the impact of ICT on agribusiness

This report outlines the impact of ICT on the food economy. On the basis of a literature review from four disciplines - knowledge management, management information systems, operations research and logistics, and economics - the demand for new ICT applications, the supply of new applications and the match between demand and supply are identified. Subsequently the impact of new ICT applications on the food economy is discussed. The report relates the development of new technologies to innovation and adoption processes and economic growth, and to concepts of open innovations and living lab

Competition and Innovation: ICT- and non-ICT-enabled Product and Process Innovations

The reason for contradictory predictions of the models studying the impact of competi¬tion on innovation is the varying assumptions with respect to competition or innovation type. Thus, we study how the impact of competition changes with different types of innova¬tive Output. In particular, we distinguish between non-ICT - and ICT-enabled product and process innovations. To allow for such flexibility, we apply Bayesian inference techniques and use direct measures of innovative that control for the heterogeneity of innovation Output. Our analysis provides evidence that supports the hypothesis that the effect of market com¬petition on innovation is not alike for all types of innovation. We observe an inverse U-shape relationship between competition and non-ICT-enabled and a clear U-shape dependency for ICT-enabled innovations. However, the results become considerably weaker, once industry effects are taken into account. Thus, although the impact of competition on innovation varies with the type of innovation, other factors seem to have a stronger impact on the incentives to innovate.Competition, innovation, Information and communication technologies

Competition and Innovation: ICT- and non-ICT-enabled Product and Process Innovations

The reason for contradictory predictions of the models studying the impact of competi¬tion on innovation is the varying assumptions with respect to competition or innovation type. Thus, we study how the impact of competition changes with different types of innova¬tive Output. In particular, we distinguish between non-ICT - and ICT-enabled product and process innovations. To allow for such flexibility, we apply Bayesian inference techniques and use direct measures of innovative that control for the heterogeneity of innovation Output. Our analysis provides evidence that supports the hypothesis that the effect of market com¬petition on innovation is not alike for all types of innovation. We observe an inverse U-shape relationship between competition and non-ICT-enabled and a clear U-shape dependency for ICT-enabled innovations. However, the results become considerably weaker, once industry effects are taken into account. Thus, although the impact of competition on innovation varies with the type of innovation, other factors seem to have a stronger impact on the incentives to innovate.Competition, innovation, Information and communication technologies

ICT, Innovation and Business Performance in Services: Evidence for Germany and the Netherlands

Using panel data for German and Dutch firms from the services sector, this paper analyses the importance of ICT capital deepening and innovation for productivity. We employ a model that takes into account that innovation and ICT use may be complementary. The results show that the contribution of ICT capital deepening is raised when firms combine ICT use and technological innovations on a more permanent basis. Moreover, the joint impact of ICT use and permanent technological innovation on productivity appears to be of the same order of magnitude in the two countries. However, the direct impacts of innovation on multi-factor productivity seems to be more robust for Germany than for the Netherlands. --Productivity,Information and Communication Technologies,Innovation,Services,Panel Data

Thought for Food: The impact of ICT on agribusiness

The paper outlines the impact of ICT on the food economy. On basis of a literature review from four disciplines – knowledge management, management information systems, operations research and logistics, and economics - the paper identifies the demand for new ICT applications, the supply of new applications and the match between demand and supply. Subsequently, the paper discusses the impact of new ICT applications on the food economy. The paper relates the development of new technologies to innovation and adoption processes and economic growth, and to concepts of open innovations and living labs.ICT, Food Economy, Innovation and Adoption, Economic growth, Agricultural and Food Policy,

Does Experience Matter? Innovations and the Productivity of ICT in German Services

In this paper, it is argued that ICT investment is closely linked with complementary innovations and most productive in firms with innovative experience. In an analysis based on firm–level panel data covering the period 1994–99, system GMM estimates for an extended production function framework reveal significant productivity effects of ICT in the German service sector. Moreover, there is strong support for the hypothesis that the experience gained from past process innovations is a specific feature that makes ICT investment more productive. The results suggest that ICT may have been contributing to productivity differentials between firms

UNDERSTANDING THE DETERMINANTS OF ICTS DIFFUSSION IN ECOWAS

The Information and Communication technology(ICT) environment in the economic community of west african states(ECOWAS) has changed sufficiently to warrant re-conceptualization of the earlier initiatives. Notably, many new technologies have emerged, especially in the area of wireless communications. Thus, ECOWAS ability to participate in and enhance its international competitiveness in the new global economy and hence make progress in poverty reduction depends in large part on its ability to use and adapt new information and technological innovations. This project therefore, sets out to enhance understanding and knowledge of the innovative effects of ICT poverty reduction and human development; and to improve ECOWAS capacities to formulate and implement national ICT policies that promote equitable access to ICT and information for socio-economic development.Technological progress, growth, productivity, diffusion, ICTS, AFRICAN ECONOMIES, DYNAMIC PANEL DATA