Productivity Divergence – Frontier Firms vs. the Others

Mika Pajarinen, Petri Rouvinen and Ilkka Ylhäinen

No 77, ETLA Reports from The Research Institute of the Finnish Economy

Abstract: Abstract International literature suggests that productivity growth of the global frontier firms – those in the best five percent – has diverged from the others during the 2000s. We study this issue using Finnish firm-level data. We find that the productivity of the Finnish frontier firms does not diverge from the others to such a degree as in the international comparisons. The findings do not provide clear evidence of a slowdown in the diffusion process. We also analyze whether frontier firms are associated with characteristics related to digitalization – and do not find clear evidence of that either. This might be related to the fact that the employed measures are related to technology adoption – not to the creativity or efficiency of its use.

Keywords: Productivity; Divergence; Diffusion; Ddigitalization; Finland (search for similar items in EconPapers)
JEL-codes: D22 O30 O40 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2017-10-13
New Economics Papers: this item is included in nep-cta, nep-eff and nep-tid
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