When Information Technology cannot be enough to improve the competitiveness of a non information-based economy. Evidence From Italy

In this empirical work, the combination of a macroeconomic study about the GDP within a firm and an industry-level analysis highlights that IT diffusion is affected by the country industrial specialization. This thaprer analyzes IT adoption in Italian enterprises and shows that IT adoption varies systematically across industries, pointing out that IT diffusion is more rapid in hi-tech manufacturing and information sectors, which are characterized by more "favorable" conditions to IT investments. In Italy, these sectors have a lower impact on GDP and employment with respect to many of the other main industrialized countries. The low specialization on these sectors had a determinant role in explaining the low productivity growth and the loss of competitiveness on the global markets that has occurred in Italy in the last few years.