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The business response to Covid-19: the CEP-CBI survey on technology adoption

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  • Capucine Riom
  • Anna Valero

Abstract

We present new data from a survey of 375 UK businesses conducted in July 2020 in partnership with the Confederation of British Industry (CBI), which seeks to understand the way in which firms have innovated in response to the crisis. We find that the pandemic has caused enormous business disruption, which has prompted many firms to focus on innovation. Over 60% of firms report that they have adopted new technologies or management practices since the onset of the pandemic, while a third have invested in new digital capabilities. We find similar patterns in terms of the introduction of new products or services. We describe how these responses differ across types of businesses and find that previous technology adoption is a strong predictor of a rapid innovation response to the crisis, even after controlling for other factors. Nearly all firms report that they expect the adoption of new technologies or practices to be permanent and to have a positive impact on firm performance. We will test these predictions with a follow-up survey one year on.

Suggested Citation

  • Capucine Riom & Anna Valero, 2020. "The business response to Covid-19: the CEP-CBI survey on technology adoption," CEP Covid-19 Analyses cepcovid-19-009, Centre for Economic Performance, LSE.
    • Handle: RePEc:cep:cepcvd:cepcovid-19-009
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    References listed on IDEAS

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    3. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis, 2020. "Why Working From Home Will Stick," Working Papers 2020-174, Becker Friedman Institute for Research In Economics.
    4. Björn Döhring & Atanas Hristov & Christoph Maier & Werner Roeger & Anna Thum-Thysen, 2021. "COVID-19 acceleration in digitalisation, aggregate productivity growth and the functional income distribution," International Economics and Economic Policy, Springer, vol. 18(3), pages 571-604, July.
    5. Nicholas Stern & Anna Valero, 2021. "Innovation, growth and the transition to net-zero emissions," CEP Discussion Papers dp1773, Centre for Economic Performance, LSE.
    6. Josh De Lyon & Swati Dhingra, 2021. "The impacts of Covid-19 and Brexit on the UK economy: early evidence in 2021," CEP Covid-19 Analyses cepcovid-19-021, Centre for Economic Performance, LSE.
    7. Patrick sergio NZUGUEM KOUAM & Aurel Merlin LATI KINMENE & Simplice Gaël TONMO & Laurent NDJANYOU, 2023. "Contraintes financières et capacités d’innovation des petites et moyennes entreprises en période de crise," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 14(2), pages 142-161, December.
    8. Juliana Oliveira-Cunha & Capucine Riom & Anna Valero, 2021. "The business response to Covid-19 one year on: findings from the second wave of the CEP-CBI survey on technology adoption," CEP Covid-19 Analyses cepcovid-19-024, Centre for Economic Performance, LSE.
    9. Mikhail G. Kuzyk, Kira P. Sergeeva, 2024. "Robotization as a Factor of Russian Firms’ Adaptation to Non-Economic Shocks," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 23(2), pages 522-550.
    10. Lutz Bellmann & Pauline Bourgeon & Christina Gathmann & Christian Kagerl & David Marguerit & Ludivine Martin & Laura Pohlan & Duncan Roth, 2021. "Digitalisierungsschub in Firmen während der Corona-Pandemie [Digitalisation in Companies: The COVID-19 Pandemic as a Push Factor]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 101(9), pages 713-718, September.
    11. Stern, Nicholas & Valero, Anna, 2021. "Innovation, growth and the transition to net-zero emissions," Research Policy, Elsevier, vol. 50(9).
    12. Barth, Erling & Bryson, Alex & Dale-Olsen, Harald, 2022. "Creative Disruption: Technology Innovation, Labour Demand and the Pandemic," IZA Discussion Papers 15762, Institute of Labor Economics (IZA).
    13. Michele Battisti & Filippo Belloc & Massimo Del Gatto, 2023. "COVID-19, Innovative Firms and Resilience," WIPO Economic Research Working Papers 73, World Intellectual Property Organization - Economics and Statistics Division.
    14. van Ark, Bart & de Vries, Klaas & Erumban, Abdul, 2021. "How To Not Miss A Productivity Revival Once Again," National Institute Economic Review, National Institute of Economic and Social Research, vol. 255, pages 9-24, February.
    15. Syed Abdul Rehman Khan & Danish Iqbal Godil & Munaza Bibi & Zhang Yu & Syed Muhammad Ahsan Rizvi, 2021. "The Economic and Social Impact of Teleworking in Romania: Present Practices and Post Pandemic Developments," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(58), pages 787-787, August.
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    18. Stern, Nicholas & Sivropoulos-Valero, Anna Valero, 2021. "Innovation, growth and the transition to net-zero emissions," LSE Research Online Documents on Economics 114385, London School of Economics and Political Science, LSE Library.

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    Keywords

    Covid-19; business performance; innovation; CBI; UK;
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