2021/04 | LEM Working Paper Series | ||||||||||||||||
Digitalizing Firms: Skills, Work Organization and the Adoption of New Enabling Technologies |
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Valeria Cirillo, Lucrezia Fanti, Andrea Mina and Andrea Ricci |
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Keywords | |||||||||||||||||
Digital technologies; Industry 4.0; skills; human capital; work organisation.
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JEL Classifications | |||||||||||||||||
D20, L23, O33
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Abstract | |||||||||||||||||
New enabling technologies are shaping the transformation of production activities. This process of
change is characterised by growing digitization, inter-connectivity and automation. The diffusion of
new technologies is, however, very uneven, and firms display different adoption behaviours. By using
panel data on a large representative sample of Italian firms, we explore the patterns and determinants
of new digital technology adoption. We build our theoretical framework on the nexus between
technology, skills and the organisation of work. We then provide novel econometric evidence on the
positive effects of human capital and training. Among the notable results of the paper, labour flexibility
does not seem to favour new technology adoption, whereas second-level collective bargaining plays a
positive role in the process. Results also show heterogeneous effects between large vs. small and
medium-size firms, and between manufacturing and service sectors.
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