New study reveals key to boosting labor productivity in firms worldwide.
The article explores how different technologies chosen by firms affect their productivity levels. By analyzing data from 35,000 firms in 22 sectors worldwide, the researchers found that the type of technology used by a firm is just as important as how well they can utilize it in determining their productivity. They discovered that some firms excel in using their chosen technology, while others struggle to maximize its potential. This highlights the need for targeted innovation policies to address productivity gaps. The number of technologies available to firms varies, with most having access to three different options. Additionally, differences in technology choices can lead to inefficiencies and hinder firms from adopting more productive technologies.