The decline in German productivity: Research into causes at the industry branch level

Since 2005 the Ifo Institute has examined the determinants of German productivity weakness. A database has been compiled for this purpose. It contains broadly diversified information on investments and capital services available at the industry branch level, whereby a subdivision in IT-producing, IT-using and non-IT-intensive branches is possible. The information on software investments is based, unlike other databases, not on estimates but on studies and surveys by the Ifo Institute. The database also supplies industry-sector-specific time series on gross value creation, on quality-adjusted man-hours and on technological change. The information in the Ifo productivity database shows that a stronger growth in IT capital intensity after 1995 had positive effects on productivity growth in Germany but was nevertheless too weak to absorb the growth declines in non-IT-capital intensity.