Information Technology and the U.S. Economy

Jorgenson, Dale W.

doi:10.1257/aer.91.1.1

Cited by 922 publications

(404 citation statements)

References 14 publications

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“…Owing to its long-term systematic declines in cost and lockstep increases in performance -that is, Moore's law -the integrated circuit has made a dazzling array of new or advanced products possible, from intercontinental ballistic missiles to global environmental monitoring systems and from smart phones to medical implants. Indeed, so fecund and important is the integrated circuit that economists identified it as the "foundation for the American growth resurgence" in the 1990s and the leading source of worldwide economic growth during that same period 2,3 . Moreover, so cheap, small, fast, powerful and abundant have chips become, and so numerous are their applications, that many of their social benefits transcend economic measurement; they simply increase the quality of life in a way that is hard for economists to measure.…”

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confidence: 99%

Science and research policy at the end of Moore’s law

2018

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Science and research policy at the end of Moore’s law

2018

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“…Information technology (IT) has recently been identified as a key driver for economic growth (Jorgenson, 2001;Stiroh, 2002). To explain the contributions made by IT to output production, researchers have leveraged neoclassical growth theory and treated IT as one type of input similar to capital and labor used in the production process that contributes to value added at the firm level (Brynjolfsson andHitt, 1995, 1996) and gross domestic product (GDP) at the country level (Dewan and Kraemer, 2000).…”

Section: Introductionmentioning

confidence: 99%

The impacts of information technology on total factor productivity: A look at externalities and innovations

Chou

Chuang

Shao

2014

International Journal of Production Economics

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The impacts of information technology (IT) on total factor productivity (TFP) are assessed through an integrative framework of IT-induced externalities and IT-leveraged innovations. Based on network externalities and endogenous growth theory, our study aims to reconcile the seeming discrepancy between the recent observed evidence and the prediction by neoclassical growth theory. We argue that computerization has reshaped the competitive landscape into a network economy with IT-induced externalities that benefit not only IT purchasers but also other stakeholders. Moreover, IT is a platform technology that can leverage innovations to enhance the technological level of production process. Consequently, these two factors of IT-induced externalities and IT-leveraged innovations exert positive impacts on TFP, suggesting IT plays a more pivotal role than input consumption and accumulation that neoclassical growth theory assumes for IT. We use panel data from 30 Organization of Economic Cooperation and Development (OECD) countries over the period of 2000 to 2009 to empirically test hypotheses on this IT-TFP link. Implications are drawn from our findings for future research to measure IT's contributions at the macro level more accurately, and policymakers are urged to cultivate IT's positive impacts on TFP to help sustain long-term economic growth.

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“…Even in the U.S., the impacts of IT on productivity and growth only became widely recognized by economists in the late 1990s, after decades of cumulative investment [7]. Bell and Pavitt [2] argue that growth in developing countries comes from technological accumulation, which is "... an evolutionary process of continuous innovation and imitation."…”

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IT diffusion in developing countries

2008

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here is widespread belief among international agencies and development specialists in the potential value of information technology (IT) to support economic and human development [11,12]. Some question whether IT alone can have a major impact on the standard of living in developing countries, but most see it offering access to vital information and services such as weather forecasting, commodity prices, health care, and education. However, a significant digital divide exists between richer and poorer countries in the use of IT and the availability of complementary assets such as telecommunications networks and skilled IT professionals. This gap has led to a public debate about what can be done to promote greater IT use so that developing countries can achieve the types of benefits already being enjoyed in the industrialized world. Policymakers need to recognize that developing economies have different drivers for IT investment than their wealthier brethren.

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Information Technology and the U.S. Economy

Cited by 922 publications

References 14 publications

Science and research policy at the end of Moore’s law

Science and research policy at the end of Moore’s law

The impacts of information technology on total factor productivity: A look at externalities and innovations

IT diffusion in developing countries

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