2026/03/22 by Xavier Cirera, Diego Comín, Marcio Cruz · 1 voice
Economics, Econometrics and Finance · Business, Management and Accounting · #Economic and Technological Innovation #Innovation and Knowledge Management #Economic Growth and Productivity
paper · doi:10.1093/qje/qjag018
openalex publication_date 2026/03/22 · openalex created_date 2026/03/24 · openalex updated_date 2026/07/22
Abstract We study technology sophistication using a novel approach that measures the sophistication of the most advanced (MAX) and the most widely used (MOST) technologies in key business functions within establishments. Using data from over 21,000 establishments across 15 countries, we find that establishments generally underutilize the most sophisticated technologies available in a business function. These MAX-MOST gaps are persistent and strongly associated with productivity both across establishments and countries. At the establishment level, there is substantial variation in both MAX and MOST, with MOST showing a more skewed distribution. MAX and MOST follow different life cycle patterns in low-income countries and among small establishments, and they exhibit different associations with several establishment characteristics and performance indicators. This evidence underscores the different nature of the technology upgrading processes that drive MAX and MOST.