Firm-Level Technology Adoption in Times of Crisis

Melanie Arntz, Michael Böhm, Georg Graetz, Terry Gregory, Florian Lehmer, Cäcilia Lipowski

Research output: Working paper

Abstract

This study investigates how crises affect firms’ adoption of frontier technologies using the Covid-19 pandemic as a case study. The analysis tracks the nature, timing, and pandemic-related motivations of investments among German firms, using longitudinal survey data linked with administrative worker–firm records. We find clear evidence for a shift toward remote work technologies that helped firms mitigate negative employment effects. Overall, however, the pandemic slowed down the diffusion of new technologies. This procyclical pattern of technology adoption is particularly striking since the pandemic created strong incentives to experiment with new technologies.
Original languageEnglish
PublisherCentre for European Economic research (ZEW)
Number of pages68
Publication statusPublished - Sept 2024

Publication series

NameZEW Discussion Papers
PublisherZEW – Leibniz-Zentrum für Europäische Wirtschaftsforschung
No.24-057

Keywords

  • Firm-level technology investments, cyclicality of technology adoption
  • cyclicality of technology adoption
  • Covid 19 crisis

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