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Last But Not Least: Laggard Firms, Technology Diffusion, And Its Structural And Policy Determinants

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Listed:
  • Giuseppe Berlingieri
  • Sara Calligaris
  • Chiara Criscuolo
  • Rudy Verlhac

Abstract

Using a unique microaggregated data set on firm‐level productivity in 13 countries from 1995 to 2014, this article provides new evidence on technology‐ and knowledge‐diffusion barriers for laggard firms. We show that, although the least productive firms benefit from a catch‐up effect, their speed of catchup is lower in digital‐ and skill‐intensive industries. This is especially true in countries with high skill mismatch, high financing frictions, and low absorptive capacity. These barriers to diffusion, combined with the rising importance of tacit knowledge and intangibles, could help explain the productivity growth slowdown observed in the last decades.

Suggested Citation

  • Giuseppe Berlingieri & Sara Calligaris & Chiara Criscuolo & Rudy Verlhac, 2025. "Last But Not Least: Laggard Firms, Technology Diffusion, And Its Structural And Policy Determinants," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 66(2), pages 595-627, May.
    • Handle: RePEc:wly:iecrev:v:66:y:2025:i:2:p:595-627
    DOI: 10.1111/iere.12748
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • 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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