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Digitalizing Firms: Skills, Work Organization and the Adoption of New Enabling Technologies

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

Abstract

New enabling technologies are shaping the transformation of production activities. This process of change is characterised by growing digitization, inter-connectivity and automation. The diffusion of new technologies is, however, very uneven, and firms display different adoption behaviours. By using panel data on a large representative sample of Italian firms, we explore the patterns and determinants of new digital technology adoption. We build our theoretical framework on the nexus between technology, skills and the organisation of work. We then provide novel econometric evidence on the positive effects of human capital and training. Among the notable results of the paper, labour flexibility does not seem to favour new technology adoption, whereas second-level collective bargaining plays a positive role in the process. Results also show heterogeneous effects between large vs. small and medium-size firms, and between manufacturing and service sectors.

Suggested Citation

  • Valeria Cirillo & Lucrezia Fanti & Andrea Mina & Andrea Ricci, 2021. "Digitalizing Firms: Skills, Work Organization and the Adoption of New Enabling Technologies," LEM Papers Series 2021/04, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2021/04
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    Cited by:

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    2. G. Denisse Chamochumbi D. & Massimo Ciambotti & Federica Palazzi & Francesca Sgr?, 2022. "The digital transformation process in the agri-food sector: A case study," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2 Suppl.), pages 43-70.
    3. Serenella Caravella & Valeria Cirillo & Francesco Crespi & Dario Guarascio & Mirko Menghini, 2023. "The diffusion of digital skills across EU regions: structural drivers and polarisation dynamics," Regional Studies, Regional Science, Taylor & Francis Journals, vol. 10(1), pages 820-844, December.
    4. Caselli, Mauro & Fracasso, Andrea & Scicchitano, Sergio, 2020. "From the lockdown to the new normal: An analysis of the limitations to individual mobility in Italy following the Covid-19 crisis," GLO Discussion Paper Series 683, Global Labor Organization (GLO).
    5. Nils Grashof & Alexander Kopka, 2023. "Widening or closing the gap? The relationship between artificial intelligence, firm-level productivity and regional clusters," Bremen Papers on Economics & Innovation 2304, University of Bremen, Faculty of Business Studies and Economics.
    6. Alexander S. Kritikos & Alexander Schiersch & Caroline Stiel, 2022. "The productivity shock in business services," Small Business Economics, Springer, vol. 59(3), pages 1273-1299, October.

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    Keywords

    Digital technologies; Industry 4.0; skills; human capital; work organisation.;
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