Journal of Management Information Systems / Summer 2011, Vol. 28, No. 1, pp. 115–145. © 2011 M.E. Sharpe, Inc. 0742–1222 / 2011 $9.50 + 0.00. DOI 10.2753/MIS0742-1222280105 Information Technology Spillover and Productivity: The Role of Information Technology Intensity and Competition KUNSOO HAN, YOUNG BONG CHANG, AND JUNGPIL HAHN KUNSOO HAN is an assistant professor of information systems at the Desautels Faculty of Management at McGill University. He received his Ph.D. in business administra- tion from the University of Minnesota, Minneapolis. His research interests include business value of IT, IT outsourcing, and interorganizational use of IT. His research has been published in Journal of Management Information Systems and Information Technology and Management and is forthcoming in Information Systems Research and MIS Quarterly. YOUNG BONG CHANG is an assistant professor of information systems at the School of Technology Management at Ulsan National Institute of Science and Technology in Korea. He received his Ph.D. in management from the University of California at Irvine. His research interests include economics of information systems, IT outsourc- ing, competition and IT value creation, and organizational impact of IT. His research is forthcoming in Information Systems Research and Information Technology & Management and has been presented at the International Conference on Information Systems and the Workshop on Information Systems and Economics. JUNGPIL HAHN is an assistant professor of management at the Krannert School of Man- agement at Purdue University. He received his Ph.D. in business administration from the University of Minnesota, Minneapolis. His research interests include knowledge management, open innovation communities, human–computer interaction, and busi- ness value of IT. His research appears in ACM Transactions on Human–Computer Interaction, Decision Support Systems, and Information Systems Research. ABSTRACT: We study interindustry information technology (IT) spillover wherein IT investments made by supplier industries increase the productivity of downstream industries. Using data from U.S. manufacturing industries, we find that industries receive significant IT spillover benefits in terms of total factor productivity growth through economic transactions with their respective supplier industries. More impor- tantly, we find that two characteristics of downstream industries, namely, IT intensity and competitiveness, which have been shown to moderate the effect of internal IT investments, play an important role in IT spillovers as well. Our results suggest that IT intensity as well as competitiveness of the downstream industry moderate the effect of IT spillovers—industries that are more IT intensive and more competitive benefit more from IT spillovers. Finally, our results suggest that the long-term effects of spillovers are greater than short-term effects, suggesting that learning periods are required to reap the benefits from the IT spillovers.