The internet of things and economic growth in a panel of countries
File(s)
Author(s)
Edquist, Harald
Goodridge, Peter
Haskel, Jonathan
Type
Journal Article
Abstract
Is the world on the cusp of a fourth industrial revolution driven by technological developments in ICT including artificial intelligence and the Internet of Things (IoT)?Thispaper focuses on IoT and how it might affect economic growth. We attempt to gauge the potential impact of IoT using: 1) regressions based on current IoT data; and 2) longer run estimates of growth accounting parameters based on those observed in a previous wave of the ICT-revolution. We find that: a) according to definitions in the literature IoT an innovational complementarity to ICT; b) early data already suggest an economically and statistically significant correlation between IoT connections and TFP growth, implying that an increase of 10 percentage points in the growth of IoT connections per inhabitant is associated with a 0.23 percentage points increase in TFP growth; c) longer run predictions of the IoT contribution based on a growth-accounting framework suggest a potential global annual average contribution to growth of 0.99% per annum (pa) in 2018-2030, approximately $849 billion pa of world GDP in 2018 prices.
Date Issued
2021-03-01
Date Acceptance
2019-11-08
Citation
Economics of Innovation and New Technology, 2021, 30 (3), pp.262-283
ISSN
1043-8599
Publisher
Taylor & Francis (Routledge)
Start Page
262
End Page
283
Journal / Book Title
Economics of Innovation and New Technology
Volume
30
Issue
3
Replaces
10044/1/75229
Copyright Statement
© 2019 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis GroupThis is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/),which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
License URL
Sponsor
Engineering & Physical Science Research Council (E
Economic & Social Research Council (ESRC)
Ericsson Enterprise AB
Ericsson Enterprise AB
Grant Number
EP/K503733/1
ES/M500562/1
9400628052
n/a
Subjects
Social Sciences
Economics
Business & Economics
Internet of things
diffusion of new technology
general-purpose technology
economic development
total factor productivity
communications technology
GENERAL-PURPOSE TECHNOLOGIES
INFORMATION-TECHNOLOGY
HISTORICAL-PERSPECTIVE
PRODUCTIVITY
INVESTMENT
ICT
1402 Applied Economics
Economics
Publication Status
Published
Date Publish Online
2019-12-06