With the broad-based slowdown in productivity growth that is affecting many OECD economies and beyond, the question is whether the current stage of the digital transformation can help strengthen productivity growth going forward. Earlier OECD work (2004) found that digital technologies can have considerable impacts on productivity growth, but only when investments in ICT are combined with investments in complementary assets, such as skills, organisational changes and process innovations, i.e. knowledge-based capital.
For policy makers, the key point is that the digital transformation is already having important impacts on productivity growth at the firm and industry level. But ensuring that these impacts translate into broader-based, aggregate productivity growth may require additional action, to facilitate the necessary structural change in the economy, and to support firms and workers in the adjustment process.