Advanced digital technologies and industrial resilience during the COVID-19 pandemic: A firm-level perspective
Elisa Calza, Alejandro Lavopa & Ligia Zagato
#2022-008
The advanced digital production (ADP) technologies of the fourth
industrial revolution (4IR) are expected to reshape the way industrial
production takes place. These technologies offer new windows of
opportunities for developing countries to catch up with the world
technological frontier, but, at the same time, they pose new challenges
and risks. This paper uses a novel firm-level data set collected by
UNIDO and partners around the world to investigate the extent to which
these technologies are diffused in developing countries, the main
factors supporting their adoption and the role played by these
technologies during the COVID-19 pandemic. Three key findings emerge
from the analysis: (1) the diffusion of these technologies is still very
limited to a handful of firms; (2) large firms, firms operating within
global value chains and firms with existing innovative capabilities are
more likely to adopt ADP technologies; and (3) advanced digitalization
has contributed to the robustness of firms as they address the COVID-19
crisis and supported their readiness to act and respond quickly and
adapt to the new context. The findings of the paper are expected to
inform policymakers in the design of industrial recovery policies that
can strengthen future industrial resilience in developing and emerging
economies.
Keywords: Industrial development, digital technologies, resilience; fourth industrial revolution, firm-level analysis, COVID-19.
JEL Classification: O12, O14, O33