![]() ![]() manufacturing firms, we find that a 10% increase in IT input is associated with a 1.7% increase in innovation output for a given level of innovation-related spending. Analyzing annual information from 1987 to 1997 for a panel of large U.S. In this study, we contribute to the literature by comprehensively examining the contribution of IT to innovation production across multiple contexts using a quality-based measure of innovation output. However, little is known about the relationship between IT, knowledge creation, and innovation output. Among these, the use of IT in innovation and knowledge creation processes is perhaps the most critical to a firm's long-term success. ![]() Research also suggests that IT is vital to intermediate processes such as those that produce intangible output. Prior research concerning IT business value has established a link between firm-level IT investment and tangible returns such as output productivity. ![]()
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