This paper examines the diffusion of Information Communication Technology (ICT) into firms in Scotland and northern England. Data concerning the adoption of micro-computers, e-mail, the Internet, ISDN, in-house website, and the automation of business functions is analysed by industry, firm size, firm age, rate of growth, export involvement, and innovation activity. The results from a sample of 1347 firms found an overall increase in the adoption of ICT in firms between 1998 and 2001. The increase is led by older and larger firms in comparison to younger and smaller firms. In addition, the diffusion of the automation of business functions was found to be sequential, from generic to specific applications. Further increases in the diffusion of ICT are likely to come from upgrading existing equipment and increases in the range of business functions that can be automated. Finally, although use of the Internet and web-based trading has increased in the sample firms, this has not replaced traditional marketing and sales. The results support the view that more firms are taking up the challenge of using ICT in-house, with older and larger firms leading the way ahead of younger and smaller firms.
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