In Chile, firms with greater ICT use achieved total factor productivity (TFP) 40 percent higher than those with lower ICT use.

ICTs are so powerful precisely because they enhance the productivity and innovative capacity of every individual, firm, and industry they touch throughout economies-and this holds true for developed and developing countries alike. In fact, ICT workers contribute three to five times more productivity than non-ICT workers. In Chile, firms with greater ICT use achieved total factor productivity (TFP) 40 percent higher than those with lower ICT use. ICT is just as vital to enabling innovation as to boosting productivity. For example, the OECD found that the probability of innovation in a firm increases with the intensity of ICT use, and that this held true for both manufacturing and services firms and for different types of innovation.