The Information and Communication Technology Sector in Czechia and Its Contribution to Innovation and Economic Growth

Abstract

The growing use of internet communication technology has led to increased economic growth across the world, and this chapter seeks to assess the case of Czechia. The study also examines the changing employment distribution in the labour market with the growing influence of information and communication technology (ICT). The multiple indicators and multiple causes model as well as changes in employment or earnings shares of occupations are used for the analysis. The findings show that increased use of ICT contributes to growth in GDP and employment. It also shows that ICT has contributed to rising labour and factor productivity through increased innovation. There is also increased demand for highly educated labour leading to growth in employment in high skill occupations, while the share of low and middle skill occupations declines. The situation, however, does not indicate job polarisation in the labour market and total employment is still increasing. The study also finds that investment and use of ICT has led to progressive development in the human development index of the Czech Republic and a decline in the gender inequality index.

Citation

Nchor, D. (2024), "The Information and Communication Technology Sector in Czechia and Its Contribution to Innovation and Economic Growth", Stavárek, D. and Tvrdoň, M. (Ed.) Modeling Economic Growth in Contemporary Czechia (Entrepreneurship and Global Economic Growth), Emerald Publishing Limited, Leeds, pp. 265-279. https://doi.org/10.1108/978-1-83753-840-920241017