The impact of digitalisation on productivity: Firm-level evidence from the Netherlands

Martin Borowiecki, Jon Pareliussen, Daniela Glocker, Eun Jung Kim, Michael Polder and Iryna Rud

No 1680, OECD Economics Department Working Papers from OECD Publishing

Abstract: This paper analyses the role of intangibles and digital adoption for firm-level productivity in the Netherlands drawing on a newly constructed panel data set of Dutch enterprises. It provides robust evidence on productivity effects of intangibles and digital adoption using firms’ exposure to sector-wide advances in intangible intensity and digital adoption as an instrument. Results show that intangibles as measured by levels of digital skill intensity have a positive and statistically significant impact on firm-level productivity growth in the service sector and for younger firms. Productivity benefits from software investment are strong for low productivity firms. Together, these findings highlight the potential of intangibles to support the productivity catch-up of laggard enterprises. The evidence also suggests that productivity benefits from ICT hardware investment and the uptake of high-speed broadband are positive and sizeable.

Keywords: digitalisation; intangibles; productivity; skills (search for similar items in EconPapers)
JEL-codes: D24 E22 J24 O33 (search for similar items in EconPapers)
Date: 2021-09-08
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-eur, nep-ict, nep-isf, nep-mac, nep-sbm and nep-tid
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaaa:1680-en

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