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Business dynamics, industry productivity growth, and the distribution of firm-level performance: evidence for the role of ICT using Dutch firm-level data

Author

Listed:
  • Michael Polder

    (Statistics Netherlands)

  • Hugo Bondt

    (Statistics Netherlands)

  • George Leeuwen

    (Statistics Netherlands)

Abstract

We present evidence on industry productivity growth and business dynamics in Dutch industries for the period 2007–2012, and investigate whether there is a role for ICT intensity in explaining differences across industries. Moreover, we relate ICT intensity to various distributional characteristics of firm performance, such as the dispersion of labor productivity and turnover, concentration and turbulence of market shares, and the efficiency of resource allocation. In the first part of the paper we follow a decomposition approach, whereas in the second part we apply a regression based analysis. The results suggest that productivity growth is higher in ICT production and industries with high ICT usage, but that ICT also increases differences in firm performance and leads to concentration of markets. In addition, there is evidence that markets are more efficient in ICT intensive industries.

Suggested Citation

  • Michael Polder & Hugo Bondt & George Leeuwen, 2018. "Business dynamics, industry productivity growth, and the distribution of firm-level performance: evidence for the role of ICT using Dutch firm-level data," The Journal of Technology Transfer, Springer, vol. 43(6), pages 1522-1541, December.
    • Handle: RePEc:kap:jtecht:v:43:y:2018:i:6:d:10.1007_s10961-016-9549-5
    DOI: 10.1007/s10961-016-9549-5
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    Cited by:

    1. Marie Le Mouel & Alexander Schiersch, 2020. "Knowledge-Based Capital and Productivity Divergence," Discussion Papers of DIW Berlin 1868, DIW Berlin, German Institute for Economic Research.

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    More about this item

    Keywords

    ICT; Reallocation; Industry dynamics; Labor productivity;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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