Business dynamics and digitalisation

This work analyses the role of the digital transformation for business dynamics across countries. The analysis combines unique harmonised data on business dynamics for 15 countries with a multi-dimensional measure of digital intensity that takes into account different facets of the digital transformation. Two key stylised facts emerge. First, digital intensive sectors – especially digital intensive services – are on average more dynamic than other sectors of the economy. Second, business dynamism has been declining in digital intensive sectors, and more so than in other sectors, especially after 2001. Despite an important role is played by technology, significant differences across countries still remain and are related to a number of institutional and policy factors.