Digital technology diffusion

Abstract

This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2 │ ECO/WKP(2018)24 DIGITAL TECHNOLOGY DIFFUSION: A MATTER OF CAPABILITIES, INCENTIVES OR BOTH? Unclassified OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.

Digitalisation and productivity: In search of the holy grail – Firm-level empirical evidence from EU countries

“…The empirical specification takes the neo-Schumpeterian growth approach to technology diffusion and innovation by Aghion and Howitt (1997[44]) and Acemoglu et al (2006[45]), which has been implemented in a number of empirical studies at the firm (Griffith, Redding and Simpson, 2006[46]; Arnold, Nicoletti and Scarpetta, 2011 [47]; Andrews and Criscuolo, 2013 [48]; Andrews, Criscuolo and Gal, 2016 [10]; Adalet McGowan, Andrews and Millot, 2017 [49]) and industry levels (Nicoletti and Scarpetta, 2003[50]; Bourlès et al, 2013 [51]). Multi-factor productivity (MFP) is assumed to follow an error correction model of the form: 4…”

Bits and bolts

“…Good regulatory frameworks facilitating investments in broadband and pro-competitive reforms in the telecommunication sector that reduce prices could be examples of such reforms. Nevertheless, the study also indicates that the most productive firms within a sector also benefit more from the adoption and diffusion of digital technologies, further increasing the divergence between firms (see also Andrews et al 2016) suggesting the importance of policies that can help lagging firms staying abreast of the latest digital advancements Another recent OECD work by Andrews et al (2018) and Sorbe et al (2019) provides more evidence on the type of policies that could lead to such productivity-enhancing adoption. It informs a policy framework that aims at increasing the inclusiveness of technology adoption and diffusion, specifically to help less productive firms to catch up.…”

“…See, in particular,Calvino et al (2018),Gal et al (2019),Calligaris et al (2018),Bajgar et al (2019a,b),Calvino and Criscuolo (2019) andAndrews et al (2018).…”

Reducing regional disparities for inclusive growth in Spain

“…Low levels of ICT use by firms can be associated with a lack of firm dynamics, as digital transformation lowers entry barriers and facilitates reallocation (Calvino and Criscuolo, 2018). International evidence suggests that managerial quality, the availability of digital skills and low levels of skill mismatch boost digital technology adoption (Andrews, Nicoletti and Timiliotis, 2018). Hence, policies in a number of these areas, as discussed elsewhere in the paper, would help.…”