Frontier Firms and Business Dynamism: Building on the early finding that productivity gaps between high and low productivity firms had been widening, the GFP demonstrated that firms at the global productivity frontier experienced robust productivity growth throughout the 2000s, whilst divergence with laggard firms increased substantially. Follow-up analyses further documented rising industry concentration across Europe and North America, contributing to debates about declining business dynamism and changing competitive dynamics. These findings highlighted the critical role of well-designed framework policies in sharpening firms' incentives and capabilities for technological adoption and promoting resource reallocation towards more productive enterprises.
Motivated by the COVID-19 pandemic, the GFP conducted a deep-dive on adoption of telework practices, and its productivity implications. A cross-country survey of social partners revealed that realising the full productivity benefits of hybrid work requires substantial managerial changes and complementary investments. In synergy with other OECD work on ICT adoption and productivity, this stream of work enhanced the understanding of the key drivers of diffusion of technology and new business models.
Firm Internationalisation and Global Value Chains: The GFP used novel centrality metrics from graph theory to identify sectors and countries that serve as influential hubs within global production networks. This work demonstrated profound structural changes in global value chains between 1995 and 2011, with several emerging economies, particularly in Eastern Europe, becoming increasingly central to global production. GFP research established that becoming more influential within GVC networks particularly benefits smaller and non-frontier firms, with productivity gains strongest in countries with flexible labour markets. The findings underscored that traditional policies encouraging GVC integration remain important for productivity growth, whilst the composition of buyer and supplier networks significantly affects spillovers to non-frontier firms.
Human Side of Productivity: GFP's ambitious project on human capital analysed administrative linked employer-employee datasets covering millions of firms and workers across ten countries. This research demonstrated that top-performing firms employ almost twice the share of high-skilled employees as the least productive firms, whilst revealing that country-specific patterns allow different skill strategies at the productivity frontier. The analysis showed that adjusting workforce composition - including skills, management practices, and diversity - could close productivity gaps between frontier and laggard firms by approximately one third. Subsequent work found that increasing female representation in senior management raises productivity growth, particularly for firms with low levels of female participation.
Labour Shortages: Further research based on a new GFP Employer Survey highlighted the pervasive nature of labour shortages among firms globally and showed that they are more likely to emerge in firms that adopt new technologies, are younger and less productive and offering worse job quality. Frontier firms also experience shortages, but are more likely to invest in automation, workforce training and internal re-organisation to compensate. Using new macro evidence, furthermore, GFP research highlighted the role of structural factors—such as population ageing, digitalisation, decarbonisation, and the rise of artificial intelligence—in driving persistent increases in labour markets tightness since the global financial crisis.
Pro-Productivity Institutions: The GFP systematically analysed the design and effectiveness of productivity institutions across multiple countries, developing analytical frameworks to assess their key characteristics and contributions to policy processes. This research established that well-designed pro-productivity institutions can significantly improve policy quality and political debate when they possess analytical independence, adequate resources, and connections to policy-making processes.