Digital technologies, learning capacity of the organization and innovation: EU-wide empirical evidence from a combined dataset

Nathalie Greenan () and Silvia Napolitano
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Nathalie Greenan: CEET - Centre d'études de l'emploi et du travail - Cnam - Conservatoire National des Arts et Métiers [Cnam] - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé, LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - Cnam - Conservatoire National des Arts et Métiers [Cnam], Cnam - Conservatoire National des Arts et Métiers [Cnam]
Silvia Napolitano: CEET - Centre d'études de l'emploi et du travail - Cnam - Conservatoire National des Arts et Métiers [Cnam] - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé, LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - Cnam - Conservatoire National des Arts et Métiers [Cnam], Cnam - Conservatoire National des Arts et Métiers [Cnam]

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Abstract: This paper investigates the effects of digitalization and organizational practices on innovation in Europe, between 2010 and 2016. We analyze the cross-country and industry differences in firms' investments and capabilities to adopt and use new technologies and their effects on innovation outputs. Along with traditional drivers of innovation, such as research and development (R&D) expenditure, two composite indicators are constructed. One encompasses direct measures of the adoption and use in enterprises of a set of digital technologies. The other measures the learning capacity of organizations, which captures the use of management tools and organizational practices concerned with the improvement of individual and organizational learning. Product, process, organizational, and marketing innovations are identified as well as their combinations within companies. Empirical evidence is provided by a unique dataset based on the integration at the sector within the country level of European Union (EU)-wide employers' and employees' surveys: the Community Innovation Survey (CIS), the Community Information and Communication Technologies (ICT) usage and e-commerce in enterprises survey (Eurostat), and the European Working Conditions Survey (Eurofound). The descriptive evidence shows that Digital technology adoption and use is rapidly growing across Europe, while the Learning capacity of organizations remains stagnant. By contrast, our results from the econometric analysis show that these investments can favor all forms of innovations and that, further, they may show some complementarity. Overall, a mix of product/process innovations and organizational/marketing innovations rests on joint investments in R&D, digital technology adoption and use, and learning capacity of the organization.

Date: 2024-06-01
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Published in Industrial and Corporate Change, 2024, 33 (3), pp.634-669. ⟨10.1093/icc/dtad064⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05536846

DOI: 10.1093/icc/dtad064

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