Estimating the impact of the Internet of Things on productivity in Europe

Héctor Espinoza, Gerhard Kling, Frank McGroarty*, Mary O’Mahony, Xenia Ziouvelou

*Corresponding author for this work

Research output: Contribution to journalArticle

1 Citation (Scopus)
6 Downloads (Pure)

Abstract

The Internet of Things (IoT) refers to interconnected devices and objects that collect and transmit data via the Internet. The IoT is an evolving technology, promising to revolutionise industries, but also demanding far-reaching policy changes (e.g. in terms of data security and privacy), which involve significant resources. This paper reviews the evidence on uptake and the economic impact of the IoT during its early years of inception. It uses a growth accounting framework to evaluate the likely impact of the IoT on productivity. Estimating the effect of new technologies on productivity is an essential step in evaluating the ‘economic value-added’, justifying resources dedicated to facilitating the adoption of innovations. We find a positive impact of the IoT on productivity, however relatively small, given that the IoT is still at an early stage of development. We present projections on the impact of the IoT under a number of scenarios.
Original languageEnglish
Article numbere03935
Number of pages7
JournalHeliyon
Volume6
Issue number5
Early online date15 May 2020
DOIs
Publication statusPublished - May 2020

Keywords

  • Internet of things
  • productivity
  • impact
  • evaluation of new technology
  • growth accounting

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