Unlocking Technology Secrets: Boosting Labor Productivity Across Industries
The article explores how different technologies used by companies affect their productivity. The researchers developed a method to separate the impact of technology choice from the ability to use that technology effectively. They found that the type of technology a company uses is just as important as how well they use it in determining their productivity. This varies greatly between different industries, with some sectors having firms where productivity is mainly influenced by technology choice, while others are more affected by how well the technology is utilized. Understanding these differences is crucial for creating targeted innovation policies. The number of technologies used by firms ranges from one to five, with most using around three. Differences in technology choice can lead to inefficiencies that prevent firms from adopting more productive technologies.