---
canonical_url: "https://csls.ca/ipm-archive/ipm-issue-37/digitalization-and-productivity-in-search-of-the-holy-grail-firm-level-empirical-evidence-from-european-countries/"
title: "Digitalization and Productivity: In Search of the Holy Grail — Firm-level Empirical Evidence from European Countries"
author:
  name: "CSLS"
  url: "https://csls.ca/author/cslc/"
date_published: "2026-07-13T07:53:06+00:00"
date_modified: "2026-07-13T07:53:06+00:00"
post_type: "ipm"
summary: ""
ipm_issue_period:
  - "Fall 2019"
ipm_keyword:
  - "2009-2015"
  - "broadband"
  - "cloud"
  - "CRM"
  - "diffusion"
  - "digitalization"
  - "ERP"
  - "Europe"
  - "firm-level"
  - "frontier firms"
  - "OECD"
  - "ORBIS"
  - "productivity"
ipm_research_theme:
  - "Productivity trends and comparisons"
  - "Technology and innovation"
ipm_country_focus:
  - "Europe"
  - "International"
  - "OECD"
featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp"
status: "publish"
---

# Digitalization and Productivity: In Search of the Holy Grail — Firm-level Empirical Evidence from European Countries

Canonical URL: https://csls.ca/ipm-archive/ipm-issue-37/digitalization-and-productivity-in-search-of-the-holy-grail-firm-level-empirical-evidence-from-european-countries/

# Digitalization and Productivity: In Search of the Holy Grail — Firm-level Empirical Evidence from European Countries

[Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-37-2-Gal-Nicoletti-von-Ruden-Sorbe-Renault.pdf)

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Cite this article as:

Gal, Peter, Giuseppe Nicoletti, Christina von Rüden, Stéphane Sorbe, and Théodore Renault. 2019. “Digitalization and Productivity: In Search of the Holy Grail — Firm-level Empirical Evidence from European Countries.” International Productivity Monitor, No. 37 (Fall 2019): 39–71. https://www.csls.ca/ipm-archive/ipm-issue-37/digitalization-and-productivity-in-search-of-the-holy-grail-firm-level-empirical-evidence-from-european-countries/

## Authors:

-
Peter Gal
OECD; Graduate Institute of International and Development Studies

-
Giuseppe Nicoletti
Economics Department, OECD

-
Christina von Rüden
OECD; Graduate Institute of International and Development Studies

-
Stéphane Sorbe
OECD; Graduate Institute of International and Development Studies

-
Théodore Renault
OECD; Graduate Institute of International and Development Studies

## IPM Issue 37

Fall 2019 pp. 39–71

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## Abstract

## Résumé

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Using ORBIS firm-level data matched with Eurostat digital adoption data (broadband, ERP, CRM, cloud computing, 2009-2015) for 20 EU countries, this article finds robust evidence that digital technology adoption is associated with productivity gains, especially in manufacturing and routine-intensive activities. Frontier firms benefit more from digitalization than laggards. Compared to earlier technology waves, digital adoption appears more dependent on complementary intangible assets (skills, organizational capital), slowing diffusion among less productive firms and contributing to increased productivity dispersion and slower aggregate growth.

À l’aide de données au niveau des entreprises d’ORBIS couplées aux données d’adoption numérique d’Eurostat (haut débit, ERP, CRM, informatique en nuage, 2009-2015) pour 20 pays de l’UE, cet article trouve des données probantes robustes que l’adoption des technologies numériques est associée à des gains de productivité, notamment dans le secteur manufacturier et les activités à caractère routinier. Les entreprises de pointe bénéficient davantage de la numérisation que les entreprises à la traîne. Par rapport aux vagues technologiques antérieures, l’adoption numérique semble plus dépendante d’actifs immatériels complémentaires (compétences, capital organisationnel), ce qui ralentit la diffusion parmi les entreprises moins productives et contribue à une dispersion accrue de la productivité et à une croissance globale plus lente.

[Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-37-2-Gal-Nicoletti-von-Ruden-Sorbe-Renault.pdf)
