Appetite for Destruction. A firm-level portrait of automation in Poland

We investigate the main drivers of automation in Poland. Using a unique occupation–firm level dataset with direct measures of automation, we subsequently document a series of stylized facts on firms’ past and planned adoption of automation technologies. The adoption extends well beyond the manufacturing — reaching industries from agriculture and retail to professional and business services, with intensity highest in sectors that previously attracted FDI and slightly less pronounced in R&D-oriented industries. Despite substantial industry- and occupation-level differences, much of the variation in automation can be attributed to firm-level heterogeneity within industries. More productive firms tend to exhibit not only higher current levels of automation, but also greater potential for further adoption — resulting, on average, in a larger gap between where they are now and what remains feasible. Large firms are more likely to automate, as fixed costs associated with automation are more easily absorbed by larger enterprises. We also find some evidence supporting a learning-by-exporting mechanism: a higher propensity to automate is observed among exporting firms. However, the link between exporting status and automation is quite heterogeneous and depends crucially on the nature of trade linkages. In general, exporters specialized in producing intermediates at early stages of GVC (forward linkages) lag behind their counterparts that are closer to final demand (backward participation). Finally, our results suggest a significant appetite for further automation because more advanced adopters appear more likely to continue automating their production.