The key role of information and communication technologies for productivity and growth is meanwhile well recognised. The application of new ICT solutions requires, however, a well functioning internet infrastructure. The scope of the project is to empirically analyse the role of broadband internet for labour productivity, innovation activity and employment structure of companies in Germany.ICT as an enabling factor has the potential to enhance product and process innovations in a company. This may be realised both via new ICT applications supporting a more efficient design of business processes as well as via ICT contributing to the innovation and improvement of products and services. More efficient business processes in turn may contribute to a higher labour productivity.The literature on skill-biased technological change shows that technical progress results in increased demand for highly qualified employees. The empirical analysis attempts to reveal whether there is an increasing demand for highly qualified employees.