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Computing Productivity: Firm-Level Evidence

Computing Productivity: Firm-Level Evidence

Brynjolfsson, Erik and Hitt, Lorin M., "Computing Productivity: Firm-Level Evidence" (June 2003). MIT Sloan Working Paper No. 4210-01.

Abstract:

    We explore the effect of computerization on productivity and output growth using data from 527 large US firms over 1987-1994. We find that computerization makes a contribution to measured productivity and output growth in the short term (using one year differences) that is consistent with normal returns to computer investments. However, the productivity and output contributions associated with computerization are up to five times greater over long periods (using five to seven year differences). The results suggest that the observed contribution of computerization is accompanied by relatively large and time-consuming investments in complementary inputs, such as organizational capital, that may be omitted in conventional calculations of productivity. The large long-run contribution of computers and their associated complements that we uncover may partially explain the subsequent investment surge in computers in the late 1990s.
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Facts on voip

  • In order to use VoIP during a power outage, an uninterruptible power supply or a generator must be installed on the premises. It should be noted that many early adopters of VoIP are also users of other phone equipment such as PBX and cordless phone bases that also rely on power not provided by the telephone company.
  • There are a number of services that have sprung up to facilitate this type of "free" VoIP call. Examples are Google Talk, Skype, TheGlobe and Yahoo Messenger. Incoming phone calls can be automatically routed to your VoIP phone, irrespective of where you are connected to the network.
  • Conventional telephones are connected directly to telephone company phone lines, which in the event of a power failure are kept functioning by back-up generators or batteries located at the telephone exchange. However, household VoIP hardware uses broadband modems and other equipment powered by household electricity, which may be subject to outages.

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