Working Paper: NBER ID: w4647
Authors: Shane M. Greenstein
Abstract: An economy benefits from advances in technical frontiers only when new technology comes into general use. This paper measures the diffusion of computing equipment at a time when computing technology underwent dramatic technical improvement. These data shed light on the long lag between advances in computing technology and advances in economic performance of users. There is little evidence that long lags were produced by the 'slow diffusion' of new technology embodied in new hardware. 'Average practice' in computing advanced as rapidly as 'best practice,' lagging it by a maximum of 6 to 7 years.
Keywords: computer technology; diffusion; mainframe computers; economic performance
JEL Codes: O33
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| average practice in computing technology (C89) | economic performance (P17) |
| advancements in best practice (O35) | average practice in computing technology (C89) |
| time taken to learn about new capabilities (J24) | lag in economic benefits from technology (O49) |
| reorganization of business enterprises (L22) | lag in economic benefits from technology (O49) |
| diffusion of computing technology (O33) | economic performance (P17) |