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Techies and Firm-Level Productivity

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  • Harrigan, James
  • Reshef, Ariell
  • Toubal, Farid

Abstract

We study the impact of techies — engineers and other technically trained workers — on firm-level productivity. We first report new facts on the role of techies in the firm by leveraging French administrative data and unique surveys. Techies are STEM-skill intensive and are associated with innovation, as well as with technology adoption, management, and diffusion within firms. Using structural econometric methods, we estimate the causal effect of techies on firm-level Hicks-neutral productivity in both manufacturing and non-manufacturing industries. We find that techies raise firm-level productivity, and this effect goes beyond the employment of R\&D workers, extending to ICT and other techies. In non-manufacturing firms, the impact of techies on productivity operates mostly through ICT and other techies, not R\&D workers. Engineers have a greater effect on productivity than technicians.

Suggested Citation

  • Harrigan, James & Reshef, Ariell & Toubal, Farid, 2024. "Techies and Firm-Level Productivity," CEPREMAP Working Papers (Docweb) 2401, CEPREMAP.
    • Handle: RePEc:cpm:docweb:2401
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    References listed on IDEAS

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    1. Nicholas Bloom & Luis Garicano & Raffaella Sadun & John Van Reenen, 2014. "The Distinct Effects of Information Technology and Communication Technology on Firm Organization," Management Science, INFORMS, vol. 60(12), pages 2859-2885, December.
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    3. Ashish Arora & Sharon Belenzon & Lia Sheer, 2017. "Back to Basics: Why do Firms Invest in Research?," NBER Working Papers 23187, National Bureau of Economic Research, Inc.
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