chapter  2
21 Pages

Technology regimes and productivity growth in Europe and the United States: a comparative and historical perspective

WithBART VAN ARK AND JAN PIETER SMITS

Explosive growth of investment in information and communication technology (ICT) was at the centre of the unrealistic expectations that surrounded the ‘new economy’ hype of the late 1990s. The slowdown in investment in ICT since 2000 has somewhat tempered the enthusiasm, but the question remains how much ICT contributes to productivity growth in the longer run. As ICT can typically be characterized as a General Purpose Technology (GPT), one would expect longlasting effects beyond the investment cycle.