Digital adoption during COVID-19
Cross-country evidence from microdata
The COVID-19 pandemic caused an unprecedented global economic downturn, affecting
productivity, business dynamics, and digital technology adoption. Using a comprehensive
commercial database from Spiceworks Ziff Davis, this study analyses the firm-level
drivers of digitalisation during the pandemic across 20 European countries. The findings
show that a considerable share of firms introduced new digital technologies during
the COVID-19 crisis. Notably, firms that were larger, more digitalised, and more productive
before the pandemic were more likely to introduce new digital technologies in 2020
and 2021. Additionally, firms with pre-existing complementary technologies had a higher
likelihood of adopting digital applications that gained momentum during the pandemic
(such as digital commerce, collaborative software, cloud, and analytics). These patterns
may increase polarisation among the best-performing firms and the rest of the business
population. Public policy can play a key role in fostering an inclusive digital transformation
in the post-pandemic era.
Published on April 24, 2024
In series:OECD Science, Technology and Industry Working Papersview more titles