ICT-intensive firms in Europe suffered no productivity slowdown during the Great Recession while their counterparts that invested less in ICT did, writes John Wu in Innovation Files.

Fact of the Week: ICT-Intensive Firms in Europe Suffered No Productivity Slowdown During the Great Recession While Their Counterparts That Invested Less in ICT Saw Decreases up to 9.5 Percent

ICT services exports have increased as a share of the world’s total services exports from just over 20 percent in 1995 to almost 32 percent today, writes John Wu in Innovation Files.

Fact of the Week: ICT Services Exports as a Share of the World’s Services Exports Have Increased From Just Over 20 Percent in 1995 to Almost 32 Percent Today

Fact of the Week: ICT Services Exports as a Share of the World's Services Exports Have Increased From Just Over 20 Percent in 1995 to Almost 32 Percent Today

Protectionists routinely attempt to justify tariffs on the notion that domestic firms need to become more efficient before facing competition from outside markets. But new research on Indian firms helps put the lie to this claim, finding that exposure to international competition actually increases their productivity.

Fact of the Week: Reduced Tariffs Between 1989 and 2011 Induced Indian Firms to Increase Their Productivity

Innovations in digital technology lead to innovations in business practices at large.

Fact of the Week: Firms Adopting Digital Technologies Are Nearly 20 Percent More Likely to Implement a Change in Corporate Strategy

These results point to continued productivity gains from ICT investment, but divergent productivity growth between the most productive firms and those with average levels of productivity.

Fact of the Week: When the Most Productive Firms in Estonia Have More Access to Broadband Internet Service, Their Productivity Growth Increases Five Times More Than Average

Cross-border data flows represent a critical component of the increasingly digital global economy. A new study of Japanese firms estimates the influence these flows have had, finding that firms which transmit data internationally increase their productivity by 6.1 percent, on average.

Fact of the Week: Engaging in Cross-Border Data Transfers Increases Firms’ Productivity by 6.1 Percent

Fact of the Week: Engaging in Cross-Border Data Transfers Increases Firms' Productivity by 6.1 Percent

Offshoring is widely maligned for reducing manufacturing employment in advanced economies. However, by lowering costs and utilizing global value chains, firms that outsource can afford to increase their investments and funding for higher-productivity jobs, making the overall economic implications less clear.

Fact of the Week: Danish Firms Increased Domestic Tech Employment by 40 Percent For Every 10 Percent of Production They Outsourced

By eliminating price-distorting tariffs, countries give their business and citizens access to more diverse goods at lower prices, and thereby increase the stock of knowledge available to innovators everywhere, writes John Wu in Innovation Files.

Fact of the Week: Global Trade Liberalization in 1990s Increased Patent Filings by 3 Percentage Points

South European countries increased productivity much slower than Germany due to a lack of IT management know-how, writes John Wu in Innovation Files.

Fact of the Week: Lack of IT Management Know-How Accounted for up to 67 Percent of the Divergence in Productivity Gains Between Germany and Southern European Countries between 1995 and 2008

Fact of the Week: Diversification in ICT Goods Sourcing Improved Firm Performance for German Manufacturers

Related

Fact of the Week: ICT-Intensive Firms in Europe Suffered No Productivity Slowdown During the Great Recession While Their Counterparts That Invested Less in ICT Saw Decreases up to 9.5 Percent

Fact of the Week: ICT Services Exports as a Share of the World’s Services Exports Have Increased From Just Over 20 Percent in 1995 to Almost 32 Percent Today

Fact of the Week: Reduced Tariffs Between 1989 and 2011 Induced Indian Firms to Increase Their Productivity