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Activity File

ICT, Innovation and Economic Growth in Transition Economies

A Multi-Country Study of Poland, Russia and the Baltic Countries

Activity # 1243
Partners
infoDev Lead Seth Ayers

Summary

infoDev is conducting an in-depth study of the impact of ICT on firm-level innovation in Poland, Russia and the Baltic States. This study assesses the diffusion and impact of ICT at the firm level in both traditional and emerging sectors, and whether and under what conditions have these sectors been successful in harnessing ICT to improve productivity. The analysis is based on 620 firm-level questionnaires, which build on an earlier questionniare used by the OECD in the EU-15. The findings and recommendations from this study aim to inform policy makers and donors on how to design and implement effective policies and programs that support competitive access to, and the productive use of ICT by firms in the region, as well as provide an analytical tool for assessing the impact of ICT on firms in other countries and regions.

Background

The transition economies of Central and Eastern Europe face considerable challenges in adapting their economies to compete effectively in regional and global markets.  Among the challenges facing these countries is the need to increase their productivity, adapt the structure of their economy to global competition in an increasingly knowledge-intensive global economy, foster innovation and new business creation, and develop new goods and services that respond to changing domestic and international demand.  ICT can help address all of these challenges in a variety of ways.

While some research has been done on the uptake of ICT as tools of productivity, competitiveness and innovation at the industry level in these countries, there is so far little rigorous data on the adoption of ICT at the firm level in key sectors of the economy that would have the greatest opportunity to be sources of innovation and competitiveness in these countries. Additionally, there is little adequate knowledge of the key enablers of ICT takeup, and ICT-driven innovation, in existing or new firms. There is also a great need for better understanding of the constraints facing entrepreneurs and innovators in these countries, and of the opportunities and challenges facing firms and industries in these countries as they increasingly integrate with the regional and global economy, and how ICT can help firms and innovators address these challenges. Particular attention will be paid to the unique challenges facing the countries now joining the European Union.

To advance understanding of these issues, both in the transition economies and more broadly, infoDev has commissioned this multi-country study of ICT, innovation and economic growth, which will include a focus on firm-level survey data collection and analysis, framed by a clear articulation of the constraints and enabling conditions at the industry and country level. The study will also provide lessons for developing countries.

The main findings and country assessments can be found in the report below.

Activity Documents


  More publications
 
Devices:  (Photo: World Bank)
ICT made a significant contribution to increases in firm-level productivity in Russia and Estonia. The contribution of ICT to increased productivity was more limited in Poland.