Is the Internet productive? A firm-level analysis

The lack of empirical research on the impact of Internet usage on workplace productivity motivated this paper. A Cobb-Douglas production function was used to confirm that information technology investment and Internet usage at work contributes to increases in productivity. The model is tested on a data set of 464 Spanish firms, based on computer assisted telephonic interviews. Results show how both information technology investment and Internet usage at work have a positive impact on workplace productivity.