Learning-by-Doing, Hi-Tech Consumption and Productivity Resurgence

Francesco Venturini, Polytechnic University of Marche

Abstract

This paper presents a growth model where the technological externality (learning-by-doing) generated by ICT is the key mechanism for development. If hi-tech assets are able to engender increasing returns, as being knowledge (or R&D) based or because creating network externalities, then the economy benefits from total spending on ICT goods, both for productive and consuming aims. Therefore, hi-tech consumption may emerge as a complementary source (with respect to investment) of growth in the industrialized countries as, here it is shown, for the U.S. productivity resurgence of the mid-Nineties.