The EU2010 agenda emphasized the importance of information and communication technology (ICT) and the role of digital networking for improving international competitiveness. In the US the government continues to emphasize the role of ICT for economic growth and publications by the World Bank (World 2012) also highlight the critical role of ICT for economic development (Kelly and Minges 2012; Qiang et al. 2012a, b; Yamamichi 2012; Youngman 2010; Sudan et al. 2010; Singh and Raja
2010); this includes digital network expansion projects in Africa and Latin America financed by the World Bank. The adoption of modern ICT in the economy is not possible without some adaptation and learning on the side of firms as well as individuals and it raises the important question of how ICT can be integrated in a basic growth model. A specific trait of the ICT sector is the continuous fall of ICT prices in most OECD countries and indeed worldwide. The implications of this specific trait of ICT are, however, not well understood. For example the fall of ICT investment expenditures relative to the nominal gross domestic product—a phenom- enon observed in several OECD countries since about 2005—has been interpreted as indicating a declining role of ICT for economic growth.