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Bits and bolts: The digital transformation and manufacturing

Author

Listed:
  • Matej Bajgar

    (OECD)

  • Sara Calligaris

    (OECD)

  • Flavio Calvino

    (OECD)

  • Chiara Criscuolo

    (OECD)

  • Jonathan Timmis

    (OECD)

Abstract

The digital transformation forces a re-think of government policy as manufacturing business models increasingly transition from “bolts” to “bits”. The road to Industry 4.0 implies important and pervasive changes in business dynamics, firm growth and the nature of competition. This report presents a framework for measuring the digital transformation of manufacturing industries, and maps the impact of digital technologies across these several dimensions: firm productivity growth, business dynamism, industry concentration, firm mark-ups and mergers and acquisition activity. It suggests policies that governments can use to facilitate digital adoption and reap the benefits of the digital revolution in manufacturing.

Suggested Citation

  • Matej Bajgar & Sara Calligaris & Flavio Calvino & Chiara Criscuolo & Jonathan Timmis, 2019. "Bits and bolts: The digital transformation and manufacturing," OECD Science, Technology and Industry Working Papers 2019/01, OECD Publishing.
  • Handle: RePEc:oec:stiaaa:2019/01-en
    DOI: 10.1787/c917d518-en
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    File URL: https://doi.org/10.1787/c917d518-en
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