---
canonical_url: "https://csls.ca/ipm-archive/ipm-issue-39/digitalization-and-the-future-of-productivity-possibilities-and-measurement/"
title: "Digitalization and the Future of Productivity: Possibilities and Measurement"
author:
  name: "CSLS"
  url: "https://csls.ca/author/cslc/"
date_published: "2026-07-13T07:53:19+00:00"
date_modified: "2026-07-13T07:53:19+00:00"
post_type: "ipm"
summary: ""
ipm_issue_period:
  - "Fall 2020"
ipm_keyword:
  - "digital goods"
  - "digitalization"
  - "GDP"
  - "ICT"
  - "measurement"
  - "mismeasurement"
  - "organizational capital"
  - "productivity"
  - "skills"
  - "TFP"
ipm_research_theme:
  - "Technology and innovation"
ipm_country_focus:
  - "Canada"
  - "International"
  - "OECD"
featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp"
status: "publish"
---

# Digitalization and the Future of Productivity: Possibilities and Measurement

Canonical URL: https://csls.ca/ipm-archive/ipm-issue-39/digitalization-and-the-future-of-productivity-possibilities-and-measurement/

# Digitalization and the Future of Productivity: Possibilities and Measurement

[Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-39-6-Santor.pdf)

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Cite this article as:

Santor, Eric. 2020. “Digitalization and the Future of Productivity: Possibilities and Measurement.” International Productivity Monitor, No. 39 (Fall 2020): 81–90. https://www.csls.ca/ipm-archive/ipm-issue-39/digitalization-and-the-future-of-productivity-possibilities-and-measurement/

## Author:

-
Eric Santor
Bank of Canada

## IPM Issue 39

Fall 2020 pp. 81–90

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## Abstract

## Résumé

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This article examines the implications of digitalization for productivity measurement and future productivity growth prospects, drawing on evidence from the Bank of Canada’s research agenda. It discusses three channels through which digitalization affects productivity: raising TFP in ICT-producing sectors, enabling productivity gains in ICT-using sectors through reorganization and complementary investments, and generating new free digital goods that are not captured in GDP. The article argues that mismeasurement of digital output likely explains only a small part of the productivity slowdown, and that organizational and skills investments are the key binding constraints on realizing digital productivity gains.

Cet article examine les implications de la numérisation pour la mesure de la productivité et les perspectives futures de croissance de la productivité, en s’appuyant sur le programme de recherche de la Banque du Canada. Il examine trois canaux par lesquels la numérisation affecte la productivité : la hausse de la PMF dans les secteurs producteurs de TIC, permettre des gains de productivité dans les secteurs utilisateurs de TIC grâce à la réorganisation et aux investissements complémentaires, et générer de nouveaux biens numériques gratuits non captés dans le PIB. L’article soutient que la sous-mesure de la production numérique n’explique probablement qu’une petite partie du ralentissement de la productivité, et que les investissements organisationnels et en compétences sont les principales contraintes à la réalisation des gains de productivité numérique.

[Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-39-6-Santor.pdf)
