In this paper, it is argued that investments in information and communication technologies (ICT) are closely linked to complementary innovations and are most productive in firms with experience from earlier innovations. In the empirical analysis based on firm-level panel data covering the period...

While a positive link between information and communication technology (ICT) and firm performance is well documented, the exact channel remains unclear. We propose an innovative link: ICT fosters product and process innovations by facilitating employee participation and outsourcing. Employee...