IT Investment Yields High Returns, Boosting Productivity Across Industries.
The article explores how investment in information technology (IT) equipment and IT workers impacts economic growth. By analyzing data from various industries, the researchers found that IT investment leads to positive but decreasing returns to scale. In some industries, the returns on IT equipment and IT labor are quite high, with annual rates of return exceeding 100 percent in nine sectors. Overall, the results suggest that IT investment can significantly boost productivity in certain industries, although the average returns for the entire economy are more moderate.