This brief study builds on the literature on information and communications technology (ICT) and labor productivity by empirically showing the importance of ICT spillovers across regions. We begin by developing a model of regional labor productivity and discuss where ICT spillovers can play a role. Using a provincial-level dataset for Iran from 2001-2011, we nd that ICT spillovers exist and have signicant eects on labor productivity. Our estimates suggest that a one percent increase in ICT investment in one province leads to a 0.66% increase in labor productivity in all other provinces.
