1.3 ICT and its contribution to productivity improvement

The manufacturing sector has been the subject of a number of recent studies on the contribution of ICT to productivity improvement.

A recent NOIE study (National Office for the Information Economy 2004) concluded that, in addition to microeconomic reform, new technology, including ICT, has made a much more significant and direct contribution to productivity growth than previously suspected.

There are, however, wide disparities in the productivity growth rates of different manufacturing industries, and it appears that the less technology oriented and lower capital industries are recording lower productivity growth rates. The NOIE study found a strong correlation between domestic ICT inputs and productivity growth.

Other studies have explored the way that firms have been successful in realising productivity gains by changing cultures and work and management practices (Australia. Productivity Commission 2004; National Office for the Information Economy 2003). However, relatively little attention has been given in studies of ICT adoption to developing a holistic view of the role of ICT in industry sectors and in businesses, and how it is being used in their strategies to gain sustainable competitive advantage.

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• Last modified: 5 February 2008, 10:29am