Measuring the Impact of ICT-driven Product and Process Innovation on the Korean Economy

ABSTRACT This study analyses the impact of information and communication technology (ICT)-driven product and process innovation on productivity and economic output growth at the sectoral level in Korea. A traditional growth accounting framework is applied with a quality-adjusted price index on ICT capital and ICT intermediate goods. In the productivity analysis, the impact of ICT-driven process innovation weakens over time in both the manufacturing and service sectors. In the economic output growth analysis, ICT-driven product innovation largely influences the ICT producing manufacturing sector, and national economic growth has benefited from ICT-driven product innovation almost four times as much as from ICT-driven process innovation during 2000–2012.