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Digital Dividend: Policies to Harness the Productivity Potential of Digital Technologies

Author

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  • Stéphane Sorbe
  • Peter Gal
  • Giuseppe Nicoletti
  • Christina Timiliotis

Abstract

This paper presents a range of policies to enhance adoption of digital technologies and firm productivity. It quantifies illustratively the effect of policy changes by combining the results of two recent OECD analyses on the drivers of adoption and their productivity benefits. Increasing access to high-speed internet, upgrading technical and managerial skills and implementing product and labour market reforms to facilitate the reallocation of resources in the economy are found to be the main factors supporting the efficient adoption of a selection of digital technologies. The most productive firms have benefitted relatively more from digitalisation in the past, contributing to a widening productivity gap with less productive firms. Policies should create the conditions for efficient adoption by less productive firms, which would help them to catch up, achieving a double dividend in terms of growth and inclusiveness. Enhancing skills has a key role to play in this area since less productive firms suffer relatively more from skill shortages.

Suggested Citation

  • Stéphane Sorbe & Peter Gal & Giuseppe Nicoletti & Christina Timiliotis, 2019. "Digital Dividend: Policies to Harness the Productivity Potential of Digital Technologies," OECD Economic Policy Papers 26, OECD Publishing.
    • Handle: RePEc:oec:ecoaab:26-en
    DOI: 10.1787/273176bc-en
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    Cited by:

    1. Dimitris Gavalas & Theodoros Syriopoulos & Efthimios Roumpis, 2022. "Digital adoption and efficiency in the maritime industry," Journal of Shipping and Trade, Springer, vol. 7(1), pages 1-22, December.
    2. Bunel, Simon & Bijnens, Gert & Botelho, Vasco & Falck, Elisabeth & Labhard, Vincent & Lamo, Ana & Röhe, Oke & Schroth, Joachim & Sellner, Richard & Strobel, Johannes & Anghel, Brindusa, 2024. "Digitalisation and productivity," Occasional Paper Series 339, European Central Bank.
    3. Nucci, Francesco & Puccioni, Chiara & Ricchi, Ottavio, 2023. "Digital technologies and productivity: A firm-level investigation," Economic Modelling, Elsevier, vol. 128(C).
    4. Cirera,Xavier & Vargas Da Cruz,Marcio Jose & Grover,Arti Goswami & Iacovone,Leonardo & Medvedev,Denis & Pereira Lopez,Mariana De La Paz & Reyes,Santiago, 2021. "Firm Recovery during COVID-19 : Six Stylized Facts," Policy Research Working Paper Series 9810, The World Bank.
    5. Peter Mayerhofer & Franz Sinabell & Christian Garaus & Katharina Hanz & Henry Jäger & Caroline Kunesch & Felix Schottroff & Hannes Leo, 2022. "Food-Standort Wien. Innovationen in der Wertschöpfungskette für Lebensmittel in der Metropolregion," WIFO Studies, WIFO, number 69171, March.
    6. Peter Mayerhofer, 2022. "Vorarlbergs Wirtschaft im europäischen Konkurrenzumfeld. Bericht zur internationalen Wettbewerbsfähigkeit 2022," WIFO Studies, WIFO, number 69424, March.
    7. Gómez-Bengoechea, Gonzalo & Jung, Juan, 2024. "The Matthew effect: Evidence on firms’ digitalization distributional effects," Technology in Society, Elsevier, vol. 76(C).
    8. Maryann P. Feldman & Serden Ozcan & Toke Reichstein, 2021. "Variation in organizational practices: are startups really different?," Journal of Evolutionary Economics, Springer, vol. 31(1), pages 1-31, January.

    More about this item

    Keywords

    competition; digitalisation; dispersion; ICT; productivity; regulation; skills;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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