ICT production and labour productivity in the Italian regions

The requirements of the knowledge-based economy and the contribution of information and communication technology (ICT) to socio-economic change have had a significant impact upon regional economic performance in the European Union. So far, however, the literature on the implications of the ICT paradigm for labour productivity growth has largely neglected the (sub-national) regional dimension. By using experimental micro-data, this paper first provides a picture of the regional contributions to labour productivity growth in Italy in the period 2001–2005. Second, it explores the relationship between ICT production and regional labour productivity in the same reference period. In line with previous studies at the country level, our findings highlight a strongly positive relationship between ICT production and regional labour productivity growth, at the same time suggesting a complementary relationship between ICT production and diffusion in explaining interregional differences in productivity performances.