The Internet as a general-purpose technology: Firm-level evidence from around the world

•We find evidence that Internet functions as a general-purpose technology.•Firms have higher growth and productivity where Internet access is greater.•The results are robust no matter the firm size and the level of technology.•Small firms benefit more from Internet than large firms do.

This paper uses firm-level data to assess whether telecom services are general-purpose technologies. We find that only Internet services are so: firm growth and productivity are substantially higher when Internet access is greater and when firms use the Internet more intensively; and it benefits firms of both high- and low-tech industries, firms of all sizes, and firms with and without exporting. Small firms benefit more from Internet than large firms do. In contrast, fixed-line and cellular services are not robustly related to firm performance.