Determinants of Information Technology Diffusion: a Study at the Firm Level for Portugal

Abstract

Recently, many studies have shown that IT played a major role in the resurgence in the growth of US output . and productivity after 1995. Some studies for European countries also confirm this idea that IT and productivity are strongly related. The contribution of IT to economic growth can only be realized when and if these technologies are widely diffused and used. Within this context, understanding the factors affecting the decision to adopt and the extent of IT use by adopters is crucial not only for applied economists, but also to creators and producers of such technologies. Using a data set for Portuguese firms, our estimation results suggest that the significant drivers of intra firm diffusion are: firm size, workers skills, technological capacities and outsourcing partner usage.