Policy Research Domains (Major Policy Research Domains) I. Maintaining Economic Dynamism under the Adverse Demographic Conditions of Low Fertility and Aging Population

Empirical Analyses Relating to IT and Productivity

Project Leader/Sub-Leader

MOTOHASHI Kazuyuki

MOTOHASHI Kazuyuki Faculty Fellow

Leader

Overview

2008 - 2009

Productivity is essential in long term growth of Japan whose working age population is decreasing. In this study, the role of IT on productivity growth is identified by empirical analysis. It is found that the impact of IT on productivity in Japanese firms is smaller than that in U.S. firms. Both macro and micro level analysis is conducted in this project to investigate the reason why IT is under utilized in Japanase firms as compared to U.S. counterparts.

2007

Although Japanese firms have actively invested in information technologies (IT) since the second half of the 1990s, it is said these investments have had limited impact on productivity. IT is utilized in a broad range of industries and serves as a critical complementary technology in realizing business innovations in the non-manufacturing sector. Hence, promoting the effective use of IT can have an important impact on TFP on the macro level. The purpose of this project is to undertake international comparison and analysis of the status of IT innovation and its impact on productivity. What are the determinants of productivity in Japan's electronic and software industries? Are Japanese firms failing to make effective use of IT? If so, what are the causes of this failure? In this project, we address these questions by conducting comprehensive macro and micro empirical analysis.

2006

Japanese companies have been investing actively in information technology (IT) since the second half of the 1990s, but it appears that the impact of this on their productivity has been limited. IT is used in a wide range of industries, and in nonmanufacturing industry in particular it is an important complement technology for realizing business innovation. In view of this, we believe that fostering the effective use of IT will have a major impact on trends in total factor productivity at the macro level. In this research we make comparisons with the United States and certain Asian countries, making comprehensive empirical analyses from both macro and micro perspectives, including from an international standpoint, in order to address the questions of whether the use of IT by Japanese companies is being conducted effectively, what the causes are if that is not the case, and what policy methods are conceivable for promoting the effective use of IT in the future.

Until June 30, 2009

Major Research Results

2010

RIETI Discussion Papers

2009

RIETI Discussion Papers

2008

RIETI Discussion Papers

OECD-METI-RIETI Conference

2007

RIETI Discussion Papers

2006

RIETI Discussion Papers