We see ICT spillovers everywhere but in the econometric evidence: a reassessment

Using company-level data for the US we study the productivity effects of knowledge spillovers, induced by the diffusion of ICT in the markets where companies operate. We adopt multiple spillover proxies and account for firms' absorptive capacity and lagged effects. Our results show that intra-industry ICT spillovers have a contemporaneous negative effect while the impact of inter-industry spillovers is positive. The overall productivity effect of ICT is negative, except for those companies with a strong absorptive capacity. However, after a 5-year lag the overall spillover effect turns positive while the role of absorptive capacity diminishes as a consequence of decreasing learning costs and more accessible technology.

This is a pre-copyedited, author-produced version of an article accepted for publication in Industrial and Corporate Change following peer review. The version of record Ian William Marsh, Ana Rincon-Aznar, Michela Vecchi, Francesco Venturini; We see ICT spillovers everywhere but in the econometric evidence: a reassessment, Industrial and Corporate Change, Volume 26, Issue 6, 1 December 2017, Pages 1067–1088, doi: 10.1093/icc/dtx008 is available online at: https://doi.org/10.1093/icc/dtx008