Book Chapter
Information Technology and Research and Development Impacts on Productivity and Skills

Since the use of information technology (IT) has become increasingly widespread throughout several industrial countries, this is expected to bring about many developments not only in the performance and the characteristics of the firm, but also in the firm's production function and in the quality and composition of the involved factors of production. In terms of its direct effects, machineries and other such equipment are becoming more dependent on computer software and on various electronic components, while a huge portion of the capital stock of companies involves the use of more computer equipment. To manage and maintain this equipment, the firms also have to employ specialized staff and workers need to have specific skills and knowledge for using IT. As such, several organizations have modified their production, sales, and administrative structures. This chapter attempts to provide a description about the correlations between productivity and skills and the use of IT and whether these are statistically significant.