technology (IT) and productivity by investigating several plant-level mechanisms through which IT could promote productivity … estimation of longitudinal models eliminate many sources of unmeasured heterogeneity that could confound productivity comparisons …

) that has been modified to include ICT investment and R&D as the two main inputs into innovation and productivity. We find … that R&D and ICT are both strongly associated with innovation and productivity, with R&D being more important for … innovation, and ICT investment being more important for productivity. For the median firm, rates of return to both investments …