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The adoption of digital technologies: Investment, skills, work organisation

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  • Cirillo, Valeria
  • Fanti, Lucrezia
  • Mina, Andrea
  • Ricci, Andrea

Abstract

New digital technologies are shaping the transformation of production activities. This process of change is characterised by growing digitization, inter-connectivity and automation. The diffusion of new technologies is, however, very uneven, and firms display different adoption behaviours. By using data on a representative sample of Italian firms, we explore the patterns and determinants of new digital technology adoption. We build our theoretical framework on the nexus between technology, skills and the organisation of work. We then provide novel econometric evidence on the positive effects of education and training. Among the notable results of the paper, labour flexibility does not seem to favour new technology adoption, whereas second-level collective bargaining plays a positive role in the process. Results also show heterogeneous effects between large vs. small and medium-size firms, and between manufacturing and service sectors.

Suggested Citation

  • Cirillo, Valeria & Fanti, Lucrezia & Mina, Andrea & Ricci, Andrea, 2023. "The adoption of digital technologies: Investment, skills, work organisation," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 89-105.
    • Handle: RePEc:eee:streco:v:66:y:2023:i:c:p:89-105
    DOI: 10.1016/j.strueco.2023.04.011
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    More about this item

    Keywords

    Digital technologies; Industry 4.0; Skills; Work organisation;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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