Thursday, January 31, 2008

IT spending directly affects your productivity: Get the facts.

According to a recent report from the London School of Economics, studying the productivity of US-multinational companies, and non-US multinationals, there is robust evidence that it is IT capital that has contributed the most to US-multinational gains.

This is even the case comparing US firms in the UK who consistently got more productivity out of their IT than other comparable firms in the UK.

And, this finding holds in the cross section when including fixed effects and even when examining a sample of companies taken over by US businesses. The data remains consistent. So what does this mean for your business?

Read the abstract and and conclusion of this paper»

Read the full academic paper»


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