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Enhancing digital diffusion for higher productivity in Spain

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  • Yosuke Jin

Abstract

The increased adoption of digital technologies has been transforming the Spanish economy. The COVID-19 crisis is expected to speed up this process. The new digital strategy, ‘Digital Spain 2025’, features a number of ambitious objectives in a timely manner. There is a need to promote digital diffusion across the country by developing communication infrastructure further, while addressing the digital divide across regions and ensuring digital security. Addressing key bottlenecks, such as people’s skills, through education policies at every level, would enable the use of digital technologies and boost productivity growth. This would help in particular laggard firms and low-skilled people, making the benefits of digitalisation shared by all. In parallel, R&D should be enhanced to lift the capacity of firms to adopt and use digital technologies effectively, resulting in improving their business models and products. Finally, business dynamism should be revitalised to encourage risk taking among firms, thus facilitating digital diffusion, while ensuring an efficient allocation of capital.

Suggested Citation

  • Yosuke Jin, 2021. "Enhancing digital diffusion for higher productivity in Spain," OECD Economics Department Working Papers 1673, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1673-en
    DOI: 10.1787/ce12270a-en
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    More about this item

    Keywords

    business environment; digitalisation; intangible assets; productivity; risk capital; skills;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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