ICT Boosts Productivity But Is Not a Panacea

Macro-level studies show that ICT has considerable economic effects through the expansion of ICT-related production of goods and services as well as via capital deepening. In the U.S., these effects are primarily driven by the use of ICT (Jorgenson, 2001; Oliner and Sichel, 2000), whereas in Finland they are primarily driven by the provision of ICT (Jalava, 2002; Jalava and Pohjola, 2002). Frictions in firms’ operating environment – excessive regulatory burden, lack of qualified personnel, inflexible hiring and firing practices, generally low ability and/or willingness to adapt to change, as well as lack of Petri Rouvinen Research Director Et lat ieto Oy Mika Maliranta Research Supervisor E T L A