We analyse factors driving inter- and intra-firm diffusion of Information and Communication Technologies (ICT) using data from Irish manufacturing firms over the period 2001 to 2004. We find that the path of ICT diffusion has been uneven across firms, industries and space, which is consistent with the theory of new technology adoption. Our results suggest that firms that are larger, younger, fast growing, skill-intensive, export-intensive and firms located in the capital city region have been relatively more successful in adopting and using ICT. We find positive technology spillovers from firms that have adopted ICT located in the same industry and region.

This paper examines the links between the internationalisation of firms and their innovation and productivity performance using data from Ireland over the period 2004–2008. Our econometric results indicate that, relative to firms that served the domestic market only, firms with international activities were more likely to invest in innovation, they were more likely to be successful in terms of innovation output, and they had a higher labour productivity. In line with the most recent literature on international trade with heterogeneous firms, our empirical evidence shows that, among firms with international activities, labour productivity was higher in foreign affiliates in comparison to domestic exporters.