---
canonical_url: "https://csls.ca/ipm-archive/issue-8/ict-output-and-productivity-growth-in-the-united-kingdom-a-sectoral-analysis/"
title: "ICT, Output and Productivity Growth in the United Kingdom: A Sectoral Analysis"
author:
  name: "CSLS"
  url: "https://csls.ca/author/cslc/"
date_published: "2026-07-13T05:43:10+00:00"
date_modified: "2026-07-13T06:41:31+00:00"
post_type: "ipm"
summary: ""
ipm_issue_period:
  - "Spring 2004"
ipm_keyword:
  - "capital deepening"
  - "growth accounting"
  - "ICT"
  - "labour productivity"
  - "productivity"
  - "sectoral analysis"
  - "TFP"
  - "United Kingdom"
  - "United States"
ipm_research_theme:
  - "Sectoral and firm-level dynamics"
  - "Technology and innovation"
ipm_country_focus:
  - "Europe"
  - "United Kingdom"
  - "United States"
featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp"
status: "publish"
---

# ICT, Output and Productivity Growth in the United Kingdom: A Sectoral Analysis

Canonical URL: https://csls.ca/ipm-archive/issue-8/ict-output-and-productivity-growth-in-the-united-kingdom-a-sectoral-analysis/

# ICT, Output and Productivity Growth in the United Kingdom: A Sectoral Analysis

[Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-8-4-Notaro.pdf)

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Cite this article as:

Notaro, Giovanni. 2004. “ICT, Output and Productivity Growth in the United Kingdom: A Sectoral Analysis.” International Productivity Monitor, No. 8 (Spring 2004): 37–46. https://www.csls.ca/ipm-archive/issue-8/ict-output-and-productivity-growth-in-the-united-kingdom-a-sectoral-analysis/

## Author:

-
Giovanni Notaro
London Economics

## IPM Issue 8

Spring 2004 pp. 37–46

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## Abstract

## Résumé

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This article uses a bottom-up growth accounting framework to quantify the sources of output and labour productivity growth across 11 sectors of the UK economy over 1993-2000, and investigates why the UK did not replicate the U.S. productivity boom despite similar levels of ICT investment. The analysis finds that ICT capital made a substantial contribution to output growth in the largest UK sectors and was a primary driver of labour productivity growth in all sectors except mining and quarrying. However, the UK’s weaker productivity performance relative to the United States is attributed mainly to slower accumulation of both ICT and non-ICT capital, rather than to TFP differences.

Cet article utilise un cadre de comptabilité de la croissance ascendante pour quantifier les sources de la croissance de la production et de la productivité du travail dans 11 secteurs de l’économie britannique sur la période 1993-2000, et examine pourquoi le Royaume-Uni n’a pas reproduit le boom de productivité américain malgré des niveaux d’investissement en TIC similaires. L’analyse constate que le capital TIC a apporté une contribution substantielle à la croissance de la production dans les plus grands secteurs du Royaume-Uni et a été un moteur principal de la croissance de la productivité du travail dans tous les secteurs, sauf l’extraction minière. Cependant, la plus faible performance de productivité du Royaume-Uni par rapport aux États-Unis est principalement attribuée à une accumulation plus lente du capital, tant en TIC qu’en non-TIC, plutôt qu’à des différences de PMF.

[Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-8-4-Notaro.pdf)
