Article: Impact of digitalisation on labour productivity in the EU Journal: International Journal of Business Innovation and Research (IJBIR) 2024 Vol.35 No.6 pp.1 - 39 Abstract: This study attempts to investigate the impact of digitalisation on labour productivity in a sample of EU countries over the years 2014-2019. This sample has been fixed as a function of data availability collected by the European Commission through the digital economic and society index (DESI). Panel data analysis reveals a strong impact of digitalisation on labour productivity. Nevertheless, instrumental variable estimates suggest that digitalisation alone cannot significantly increase labour productivity. We find sizable differences across countries, with the Southern and Eastern European countries lagging behind the Central and Northern European countries, probably because of the low public investment in research and development (R&D) and human capital and the smaller size of firms. Findings suggest, in turn, that it would be useful for policymakers to provide enough support to small-sized firms in R&D and human resources management, especially in Southern and Eastern European countries. Inderscience Publishers - linking academia, business and industry through research

Title: Impact of digitalisation on labour productivity in the EU

Authors: Giuseppe Cinquegrana; Giovanni De Luca; Paolo Mazzocchi; Claudio Quintano; Antonella Rocca

Addresses: Italian National Institute of Statistics (ISTAT), Via Cesare Balbo 16. 00184, Rome, Italy ' Department of Management and Quantitative Studies (DISAQ), University of Naples Parthenope, Via Generale Parisi, 13 80132, Naples, Italy ' Department of Management and Quantitative Studies (DISAQ), University of Naples Parthenope, Via Generale Parisi, 13 80132, Naples, Italy ' Department of Management and Quantitative Studies (DISAQ), University of Naples Parthenope, Via Generale Parisi, 13 80132, Naples, Italy ' Department of Management and Quantitative Studies (DISAQ), University of Naples Parthenope, Via Generale Parisi, 13 80132, Naples, Italy

Abstract: This study attempts to investigate the impact of digitalisation on labour productivity in a sample of EU countries over the years 2014-2019. This sample has been fixed as a function of data availability collected by the European Commission through the digital economic and society index (DESI). Panel data analysis reveals a strong impact of digitalisation on labour productivity. Nevertheless, instrumental variable estimates suggest that digitalisation alone cannot significantly increase labour productivity. We find sizable differences across countries, with the Southern and Eastern European countries lagging behind the Central and Northern European countries, probably because of the low public investment in research and development (R&D) and human capital and the smaller size of firms. Findings suggest, in turn, that it would be useful for policymakers to provide enough support to small-sized firms in R&D and human resources management, especially in Southern and Eastern European countries.

Keywords: labour productivity; digitalisation; digital economic and society index; DESI; panel data analysis; EU.

DOI: 10.1504/IJBIR.2024.142806

International Journal of Business Innovation and Research, 2024 Vol.35 No.6, pp.1 - 39

Received: 25 Jan 2024
Accepted: 05 Apr 2024
Published online: 22 Nov 2024 *

Title: Impact of digitalisation on labour productivity in the EU

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