olution, Contributions to Management Science, DOI 10.1007/978-3-7908-2352-3_6, C Springer-Verlag Berlin Heidelberg 2009 O. Martikainen It is nevertheless obvious that for vast majority of workers, job descriptions will ultimately differ considerably from the current ones. This in turn will have consequences in the labor market and for society at large, which should be studied. In their further research Maliranta and Rouvinen (2004) study productivity effects of portability as well as wired and wireless connectivity using company level data of Finnish ICT. They found that a computer with only processing and storage capabilities boosted labour productivity by 9% (corresponding to 5% output elasticity), portability by 32%, wired connectivity by 14%, and wireless connectivity by 6%. These findings are in line with previous data, and comparisons to ICT costs suggest that firms equate marginal costs and returns. While increases in ICT employment can no longer be a major source of productivity growth in developed economies, the studied new characteristics can. Technological Innovations Need Application Innovations to Improve Firm Performance in the Software Area Technical progress and innovation have long been recognized to have the central role in economic growth (e.g., Kuznets 1930; Schumpeter 1939). However, on firm level the effect of innovation to firm growth has not always been found. The empirical research of 21 studies referred to in Del Monte and Papagni (2003) gives the following result: research intensity measured by the R&D to sales ratio indicates a positive effect on growth rate of firms in four out of seven studies. These same authors analyzed also the relation between innovation and perfor- mance of 884 Italian firms during 1992-1997. Their results confirmed that the growth rates of sales and personnel in firms conducting R&D were larger (56% and 18%, respectively) than those of firms without R&D (47.7% and 10.4%, respec- tively) with a statistically significant difference (see Del Monte and Papagni 2003