Technology, Organizations and Productivity: Lessons from Solow’s Paradox

Abstract

The objective of this work is to discuss the relationship between diffusion of technology, organizational changes and productivity growth. The theoretical and empirical literature on the relationship between information technology (IT) diffusion and productivity growth is reviewed, focusing on Solow’s Paradox. An approach that tries to explain this Paradox from the perspective of the diffusion of technological and organizational innovations is adopted. In the conclusions, considerations about public policies for dealing with the new technologies are presented.

JEL Classification: O41; O10.