The impact of digitalisation on productivity: Firm-level evidence from the Netherlands
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.
Published on September 08, 2021
In series:OECD Economics Department Working Papersview more titles