Productivity, technology and intangible assets

This paper applies growth accounting methodology to analyse the evolution of labour productivity and total factor productivity (TFP) in Spain and a set of selected countries from the perspective of the growth potential that digitalisation offers. The role of information and communication technologies (ICTs) is viewed from two complementary perspectives. The first considers the role played by ICT assets, as well as R&D and other intangible assets not included in national accounts. The second examines the sectoral composition of production distinguishing between digital producing industries (DP), the most digital intensive using industries (MDIU) and the least digital intensive using industries (LDIU). We find that the notable delay in productivity in Spain compared to other countries is mainly due to: (1) low levels of investment in both ICT and intangible assets, which translates into lower productivity in almost all sectors; and (2) its productive specialisation biased towards the most traditional sectors classified as LDIU. The paper concludes by looking at the future of Spanish productivity in examining the potential role that AI could play in strengthening productivity growth.