International dimensions of the productivity paradox

International dimensions of the productivity paradox Don ™t blame IT! International Dimensions of the Productivity Paradox The productivity paradox of information technology questions the contributions of IT to economic output and productivity, based on the fact that there has been a marked slowdown in pro- Sanjeev Dewan and Kenneth L. Kraemer ductivity growth despite massive and growing investments in IT. Figure 1 (top half) illustrates the paradox for the U.S., graphing the annual growth of labor productivity and new IT investment per worker over the period 1965 “1994.1 It is apparent that annual growth rate in labor productivity has slowed from over 3% in the 1960s to roughly 1% in the 1990s. By comparison, IT investments have been growing at much higher rates for most of this time period. These and other similar trends in the U.S. economy are concisely expressed by Robert Solow ™s nowfamous quip that œthe computer age is everywhere but in the productivity statistics.  In fact, Solow ™s observation applies equally well to other advanced economies as it does to the U.S. A slowdown in productivity growth has been the plight of other developed countries as well. The bot1Labor productivity is measured by the Bureau of Labor Statistics in http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Communications of the ACM acm

International dimensions of the productivity paradox

Loading next page...
 
/lp/acm/international-dimensions-of-the-productivity-paradox-YjeRv00ZMZ
Publisher
Association for Computing Machinery
Copyright
Copyright © 1998 by ACM Inc.
ISSN
0001-0782
D.O.I.
10.1145/280324.280333
Publisher site
See Article on Publisher Site

Abstract

Don ™t blame IT! International Dimensions of the Productivity Paradox The productivity paradox of information technology questions the contributions of IT to economic output and productivity, based on the fact that there has been a marked slowdown in pro- Sanjeev Dewan and Kenneth L. Kraemer ductivity growth despite massive and growing investments in IT. Figure 1 (top half) illustrates the paradox for the U.S., graphing the annual growth of labor productivity and new IT investment per worker over the period 1965 “1994.1 It is apparent that annual growth rate in labor productivity has slowed from over 3% in the 1960s to roughly 1% in the 1990s. By comparison, IT investments have been growing at much higher rates for most of this time period. These and other similar trends in the U.S. economy are concisely expressed by Robert Solow ™s nowfamous quip that œthe computer age is everywhere but in the productivity statistics.  In fact, Solow ™s observation applies equally well to other advanced economies as it does to the U.S. A slowdown in productivity growth has been the plight of other developed countries as well. The bot1Labor productivity is measured by the Bureau of Labor Statistics in

Journal

Communications of the ACMacm

Published: Aug 1, 1998

There are no references for this article.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off