Published
"The Return on Information Technology: Who Benefits Most?" with E. Dhyne, J. Konings and S. Vanormelingen - Information Systems Research, 32(1): 194-211. https://doi.org/10.1287/isre.2020.0960
Covered in VOX, De Standaard and De Tijd
Abstract: This paper uses a new microdata set of B2B firm-level transactions in Belgium to construct a measure of ICT investment at the firm level, which we combine with the income statement of firms to analyze the impact of ICT on productivity. We find that a firm investing an additional euro in ICT increases value added by 1 euro and 35 cents on average. This marginal product of ICT investment increases with firm size and varies across sectors. While we find substantial returns of ICT at the firm level, such returns are much lower at the aggregate level. This is due to underinvestment in ICT (ICT capital deepening is low) and misallocation of ICT investments.
"Productivity Growth over the Business Cycle: Cleansing Effects of Recessions" with S. Vanormelingen - Small Business Economics, https://doi.org/10.1007/s11187-022-00608-7
Abstract: This paper investigates the impact of recent recessions on the origins of productivity growth. We show how business cycles affect productivity growth, with particular attention for the impact of job reallocation and labor hoarding. We find evidence that recessions induce productivity enhancing job reallocation in manufacturing but not in services industries and show that labor hoarding mitigates this cleansing effect of recessions. Furthermore, we show how entry and exit of firms and industry dynamics shape the evolution of aggregate productivity.
Work in Progress
"The Impact of Innovation on Productivity: Profitability and Technical Efficiency" with B. Cassiman, J. Konings and S. Vanormelingen - Available on demand
Abstract: This paper provides new insights on the relation between innovation and productivity. The productivity measures used so far in the innovation literature reflect firm performance, which confounds demand and technical efficiency. Nevertheless, the distinction between the two is crucial. This paper builds on recent advances in the productivity literature to improve our understanding of how product innovation, process innovation, organizational, and marketing innovation affect total factor productivity. To this end, this paper proposes a decomposition model to gauge the impact of innovation on productivity and profitability. We apply this model using unique firm level data for a sample of Belgian manufacturing firms that contains information on innovation activities, traditional firm performance measures, but also on prices and quantities which allow us to estimate markups, marginal costs and physical productivity.
Other
"Managementpraktijken in Vlaanderen. Voorbereidende studie" with C. Lecocq - Beleidsrapport STORE-B15-013
Samenvatting: De voorbereidende studie voor een bevraging van management praktijken in de maakindustrie in Vlaanderen omvat onder meer een aantal diepte-interviews met bedrijfsleiders en / of productieverantwoordelijken en het opstellen en voorleggen van een vragenlijst managementpraktijken aan verantwoordelijken voor productie in bedrijven actief in de maakindustrie. Deze vormen de basis voor een reeks concrete aanbevelingen met betrekking tot het organiseren van een dergelijke bevraging.