Digital Impact

Italy is failing to take full advantage of the ICT revolution compared to the EU and the USA, as shown by its dismal GDP growth and lower productivity performances. In particular, the Italian digital scenario is characterized by:

  1. Lower and significantly less dynamic productivity growth in ICTproducing industries, not compensating that of other industries;
  2. Lower ICT investment rates generating lower contribution of ICT capital to GDP growth.

Nevertheless, the positive spillover effect of ICT products and services on ICT-using sectors are significantly positive in Italy. So why is digital advancing so slow? Several elements are fueling this trend. The average lower size of Italian firms compared to both the EU and USA average, the slower diffusion of productivity from the frontier (top performers) to the rest of the economy, and - most of all - the lack of adequate management practices, which have not fostered the organizational changes that allow to harness the benefits of ICT […]

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