Tuesday, July 17, 2007

The growth gap between the USA and Europe due to IT ?

Why some do I.T. better
Although this literature is in its early stages, the research suggests that other organisational and managerial factors - which cannot be studied in isolation - interact with the use and the effects of IT on productivity, The bulk of the evidence from firm-level, microeconomic studies is that IT does have an economically and statistically significant impact on productivity but this varies dramatically between firms. Having the right organisation is important in getting the most out of IT investment. Organisational differences lie behind US versus Europe productivity performance – US firms are better placed to take advantage of IT. This could be due to their ability to reorganize more quickly because of lighter labour regulation.

Via Vox EU

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