The subtleties of how the Internet impacts productivity growth, once a boost to investment concludes, are not entirely evident in macroeconomic data and traditional methods of accounting for the contribution of information and communication technology (ICT) to economic growth. ICT investments make the Internet and wireless connectivity possible, and new technologies for high-speed digital communication (as opposed to computing per se) give rise to new possibilities that impact how firms do business and how households use time. How are these changes reflected in economic growth and productivity? In this chapter we will address how the growth in digital communication technology – particularly the Internet – has impacted productivity and living standards from a national and international point of view.
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