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KDI 경제교육·정보센터

ENG
  • 경제배움
  • Economic

    Information

    and Education

    Center

국제무역
Technology Sophistication Across Establishments
CEPR
2025.01.21
This paper examines technology sophistication in establishments. To comprehensively measure technology sophistication, we create a grid that covers key business functions and the technologies used to conduct them. Analyzing data from over 21,000 establishments in 15 countries, we find that the most widely used technology is usually not the most sophisticated available in the business function. There is significant variation in technology sophistication across and within countries, explaining 31% of productivity dispersion and over half of the agricultural productivity gap. The sophistication of widely used technologies is more relevant for productivity than the most advanced technologies. More sophisticated technologies are appropriate for both developed and developing countries.