37 © OECD 2004 OECD Economic Studies No. 38, 2004/1 THE ICT PRODUCTIVITY PARADOX: INSIGHTS FROM MICRO DATA Table 1. by Dirk Pilat TABLE OF CONTENTS Introduction ................................................................................................................................ 38 Measurement issues .................................................................................................................. 39 Evidence on the impacts of ICT at the firm level ................................................................... 43 Links between ICT and firm performance ........................................................................ 45 Impacts in services .............................................................................................................. 47 Factors that affect the impact of ICT at the firm level ........................................................... 49 Skills ...................................................................................................................................... 50 Organisational factors ......................................................................................................... 51 Innovation............................................................................................................................. 52 Competitive effects and the role of experimentation .................................................... 53 Firm size and age................................................................................................................. 54 Lags ....................................................................................................................................... 55 Firm-level evidence and the productivity paradox ............................................................... 56 Concluding remarks ................................................................................................................... 58 Bibliography ................................................................................................................................ 62 Senior Economist, Economic Analysis and Statistics Division, Directorate for Science, Technology and Industry. This paper reflects the views of the author and not necessarily those of the organisation or its member countries.