New OECD Study Shows ICT's Growth Potential Linked to Regulatory Environment

05/08/2003 - Countries with high levels of product and labour market regulation have had lower shares of investment in ICT in recent years than countries where the regulatory environment is lighter, according to a new OECD report, ICT and Economic Growth. Evidence from OECD Countries, Industries and Firms .

The report draws on OECD research and new firm-level studies undertaken in Australia, the United Kingdom, Canada, Denmark, Finland, France, Germany, Italy, Japan, Netherlands, Sweden, Switzerland and the U.S. to draw a connection between the regulatory environment, levels of ICT investment and productivity growth.

It notes that productivity growth in countries such as the U.S., Australia and Canada with a record of strong investment in information and communications technologies (ICT) has remained robust despite the recent economic slowdown. By contrast, productivity growth in some other countries has weakened, in spite of investment in ICT.

To make effective use of ICT investment, the report observes, companies need to be able to innovate and adjust their organisational structures and workforces to new working methods.  With ICT networks now spreading throughout much of the business sector in OECD countries, it recommends governments to focus on ensuring that the right regulatory environment is in place to reap maximum advantage from them.

Journalists may obtain a copy of the report by contacting Nicole Le Vourch, OECD's  Media Relations Division. For further information, please contact Dirk Pilat, OECD's Science, Technology and Industry Directorate (tel: [33] 1 45 24 87 49).