The Greek ICT Sector and Its Contribution to Innovation and Economic Growth

Abstract

The aim of this chapter is to explore the economic impact of the ICT sector in the Greek economy. In the first stage of this study, the ICT sector is identified as a composite agglomerate of various manufacturing and service industrial sectors of the economy, following its international definition introduced by OECD. Under this concept, we explore the main structural indicators of its business activity and quantify its impact in the Greek economy (in terms of production value, GDP, investment, and employment), utilizing the basic principles of Input-Output analysis. We further investigate the ICT sector’s linkages with other industries as a ‘route’ for technology and innovation diffusion in the Greek production system by approximating the ICT sector as the enabling force for the digital transformation of production in the face of Industry 4.0. The empirical results of this analysis are accompanied by a review of some key qualitative characteristics of the sector and elaborate on major challenges and relevant policy implications that arise.