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New digital technologies and firm performance in the Italian economy

Author

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  • Valeria Cirillo
  • Lucrezia Fanti
  • Andrea Mina
  • Andrea Ricci

Abstract

New digital technologies can generate substantial gains for adopting businesses. In this paper we analyse the impact of new technologies associated with the Industry 4.0 paradigm on labour productivity, average wages and sales growth. The analysis is based on microdata produced by the Italian National Institute for the Analysis of Public Policies (INAPP) on a large representative sample of Italian firms. We merge INAPP data with Orbis data covering the period 2010–2014-2018. By applying a Diff-in-Diff methodology, we show that the economic size of the effect of new technologies on productivity and sales is approximately twice as large as the effect on average wages. The positive impact is stronger for small and medium-size firms, even though the effects appear to be concentrated among more mature rather than younger firms and are heterogeneaous along the distributions. Results are robust to unobserved heterogeneity and endogeneity issues.

Suggested Citation

  • Valeria Cirillo & Lucrezia Fanti & Andrea Mina & Andrea Ricci, 2023. "New digital technologies and firm performance in the Italian economy," Industry and Innovation, Taylor & Francis Journals, vol. 30(1), pages 159-188, January.
    • Handle: RePEc:taf:indinn:v:30:y:2023:i:1:p:159-188
    DOI: 10.1080/13662716.2022.2055999
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    Citations

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    Cited by:

    1. Marco Bettiol & Mauro Capestro & Eleonora Di Maria & Roberto Ganau, 2024. "Is this time different? How Industry 4.0 affects firms’ labor productivity," Small Business Economics, Springer, vol. 62(4), pages 1449-1467, April.
    2. Cirillo, Valeria & Mina, Andrea & Ricci, Andrea, 2024. "Digital technologies, labor market flows and training: Evidence from Italian employer-employee data," Technological Forecasting and Social Change, Elsevier, vol. 209(C).
    3. Valeria Cirillo & Andrea Mina & Andrea Ricci, 2024. "Digital Technologies, Labor market flows and Training: Evidence from Italian employer-employee data," LEM Papers Series 2024/22, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    4. Stan Metcalfe, 2024. "Joseph Schumpeter, Alfred Marshall and the nature of restless capitalism," MIOIR Working Paper Series 2024-02, The Manchester Institute of Innovation Research (MIoIR), The University of Manchester.
    5. Angelo Leogrande & Carlo Drago & Massimo Arnone, 2024. "Analyzing Regional Disparities in E-Commerce Adoption Among Italian SMEs: Integrating Machine Learning Clustering and Predictive Models with Econometric Analysis," Working Papers hal-04700413, HAL.
    6. Bettiol, Marco & Capestro, Mauro & Di Maria, Eleonora & Ganau, Roberto, 2024. "Is this time different?: how Industry 4.0 affects firms' labor productivity," LSE Research Online Documents on Economics 124545, London School of Economics and Political Science, LSE Library.
    7. Rossi, Luca & Pasca, Maria Giovina & Arcese, Gabriella & Poponi, Stefano, 2024. "Innovation, researcher and creativity: A complex indicator for territorial evaluation capacity," Technology in Society, Elsevier, vol. 77(C).
    8. Silvia Massini & Mabel Sanchez Barrioluengo & Xiaoxiao Yu & Reza Salehnejad, 2024. "Digital transformation in firms: determinants of technology adoption and implications for performance," MIOIR Working Paper Series 2024-01, The Manchester Institute of Innovation Research (MIoIR), The University of Manchester.
    9. Mauro Caselli & Edwin Fourrier-Nicolai & Andrea Fracasso & Sergio Scicchitano, 2024. "Digital Technologies and Firms’ Employment and Training," CESifo Working Paper Series 11056, CESifo.
    10. Natália Barbosa, 2024. "Artificial Intelligence and exporting performance:Firm-level evidence from Portugal," GEE Papers 183, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Sep 2024.
    11. Antonio Ughi & Andrea Mina, 2023. "Digital Advantage: Evidence from a Policy Evaluation of Adoption Subsidies," LEM Papers Series 2023/41, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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