Supporting the Business Response to COVID-19: Survey on Technology Adoption
Lead Research Organisation:
London School of Economics and Political Science
Department Name: Centre for Economic Performance
Abstract
This research project builds the evidence base on technology adoption, and examines how government can best support businesses, in particular small and medium sized enterprises (SMEs), in the UK at a time of crisis. Working in collaboration with the Confederation of British Industry (CBI), this project will design and undertake a new survey of businesses across the UK to shed light on the extent to which, in response to the COVID-19 crisis, businesses have introduced new technologies or organisational practices that are considered "productivity enhancing" in normal times. It will seek to understand the drivers and impacts of such innovation, business perceptions on these, and the relative effectiveness of different business support policies from the perspectives of businesses themselves.
Via a follow-up survey one year on (and linking to secondary data sources), we will examine whether such innovation persists into the longer run, its impact on firm survival, performance, employment and worker productivity; and how government policy might promote the persistence of productivity enhancing changes into the recovery phase.
The first deliverable will be a report summarising the data, including analysis of heterogeneity by sector, region and firm type. The second deliverable will be a report summarising the findings of the combined initial and follow on surveys. Collaborating with the CBI in these bespoke business surveys will help to create relevant and informative questions on product and process innovation, enablers and barriers to innovation, and business views on potential policy levers for the recovery. The project will seek to inform business support policies to enable firms to survive, adapt and grow out of the current crisis.
Via a follow-up survey one year on (and linking to secondary data sources), we will examine whether such innovation persists into the longer run, its impact on firm survival, performance, employment and worker productivity; and how government policy might promote the persistence of productivity enhancing changes into the recovery phase.
The first deliverable will be a report summarising the data, including analysis of heterogeneity by sector, region and firm type. The second deliverable will be a report summarising the findings of the combined initial and follow on surveys. Collaborating with the CBI in these bespoke business surveys will help to create relevant and informative questions on product and process innovation, enablers and barriers to innovation, and business views on potential policy levers for the recovery. The project will seek to inform business support policies to enable firms to survive, adapt and grow out of the current crisis.
| Description | In the initial survey, we found that the Covid-19 crisis has induced a technological response in firms that appears to be greater than what we would have expected in "normal times". In our report, we document a number of interesting findings regarding business expectations regarding the impacts of such activities on performance and workers, the drivers and barriers to adoption, and the types of policy that are valued. Such findings were built upon in the second which we conducted in July 2021. Our second report, published in November 2021 found that that process innovation has been widespread since March 2020: 75% of firms have adopted digital technologies, 55% new digital capabilities and nearly 70% new management practices, and a large share of firms continued to innovate beyond the initial lockdowns. We find similar patterns in terms of the introduction of new products or services. We describe how the self-reported impacts of these technologies on firm performance and on workers differ across types of businesses, technologies adopted and business functions that these technologies relate to. We find that previous technology adoption is a strong predictor of a continued innovation response to the crisis, and that gaps in performance between more and less digitised firms might be expected to widen in the future. |
| Exploitation Route | Findings have been discussed with a number of stakeholders in the academic and policy community working on topics related to technology adoption, and the potential for new surveys / questions has been discussed with the CBI, Bank of England and the Institute for the Future of Work. We also plan to merge our survey with secondary business data in order to track the performance of firms that adopted technologies versus appropriate control groups. |
| Sectors | Digital/Communication/Information Technologies (including Software),Financial Services, and Management Consultancy,Government, Democracy and Justice |
| URL | https://cep.lse.ac.uk/_new/events/event.asp?index=7686 |
| Description | We were approached by a number of stakeholders to discuss the findings of our work, including HMT, BEIS and Bank of England. We hosted a workshop bringing together key stakeholders from business, policy and academia where we discussed what we know from the broader evidence base, and key questions to explore in future work. Valero and Van Reenen then wrote up related issues in a piece for the Economics Observatory. The Government referenced our paper on the initial survey in the "Plan for Growth" which accompanied Budget 2021, and our work has been written up in the media, including by The Times. Valero was invited to discuss findings in a conference organised by the Private Sector Development Research Network (International Finance Corporation, World Bank Group), at a Policing conference, at an OECD event, and to draw on this evidence as part of giving evidence on technology adoption in BEIS select committee sessions (including on the Help to Grow scheme in May 2022). Since our second survey was published, Valero and Riom wrote an article for the Economics Observatory on the impacts of technology adoption since Covid on workers. Valero was invited to present findings to the Shadow Chancellor's team. A new survey is now planned for March 2023 (funded by POID), following up on technology decisions in businesses in light of the energy crisis and change required by the net zero transition. |
| First Year Of Impact | 2020 |
| Sector | Digital/Communication/Information Technologies (including Software),Financial Services, and Management Consultancy,Government, Democracy and Justice |
| Impact Types | Economic,Policy & public services |
| Description | Reference to our work and ideas in UK Government "Build Back Better: Our Plan for Growth" which accompanied Budget 2021 |
| Geographic Reach | National |
| Policy Influence Type | Citation in other policy documents |
| Impact | The government' plan for growth explicitly references Riom and Valero (2020) in Footnote 1 and also is structured very much in line with a lot of CEP/GRI thinking set out in the LSE Growth Commission 2013, and since. |
| URL | https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/9668... |
| Description | Collaboration with Confederation of British Industry on Business Surveys |
| Organisation | Confederation of British Industry (CBI) |
| Department | Confederation of British Industries |
| Country | United Kingdom |
| Sector | Charity/Non Profit |
| PI Contribution | I initiated this project idea and approached CBI to collaborate on business surveys exploring the technological response to the pandemic. |
| Collaborator Contribution | CBI worked with us to develop the survey, and conducted the outreach, hosted the survey on their platform. |
| Impact | The Riom and Valero (2020) paper on business technology adoption, the CEP-POID event on the same topic, and the Economics Observatory Piece written with John Van Reenen. Also, numerous interactions with policymakers and invitations to present at roundtables and events. |
| Start Year | 2020 |
| Description | Article for the Economics Observatory |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Blog summarising findings from our survey of relevance for workers |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.economicsobservatory.com/firms-digital-innovation-in-the-pandemic-how-have-workers-been-... |
| Description | BEIS select committee - Help to Grow programme |
| Form Of Engagement Activity | A formal working group, expert panel or dialogue |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Oral evidence on technology adoption in businesses and how government support can improve this |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://parliamentlive.tv/Event/Index/305a0255-ee02-4253-915f-e9ecae1c61aa |
| Description | Blog for LSE business review |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Blog summarising findings from our second survey |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://blogs.lse.ac.uk/businessreview/2021/11/22/covid-19-spurred-a-wave-of-new-technology-adoption... |
| Description | Blog setting out findings from our Business Basics RCT |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Summarising findings from our technology adoption RCT |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://innovationgrowthlab.org/blog/lessons-designing-tech-rcts-smes |
| Description | HMT-Economics Observatory presentation in human capital Q&A session |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Discussed main thoughts about human capital and growth |
| Year(s) Of Engagement Activity | 2021 |
| Description | Invited to speak on business technology response to Covid at Private Sector Development Research Network, International Finance Corporation, World Bank Group |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Professional Practitioners |
| Results and Impact | Pre-recorded discussion session which was part of the conference programme, in discussion with Chiara Criscuolo and Alexandros Roussos on technology adoption in light of Covid-19 |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.psdresearchnetwork.com/aw-event/firms-resilience-firms-resilience-innovation-and-technol... |
| Description | LSE Business Review blog, COVID has forced many firms to innovate, with possible lasting impacts |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Blog summarising the findings from our report |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://blogs.lse.ac.uk/businessreview/2020/10/07/covid-has-forced-many-firms-to-innovate-with-possi... |
| Description | Labour party productivity event - shadow front bench advisors |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Invited to take part in this roundtable |
| Year(s) Of Engagement Activity | 2021 |
| Description | NESTA/Green Alliance event on Net Zero and productivity |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Presentation based on my Research Policy paper with Nick Stern, and mentioned results from CEP-CBI survey |
| Year(s) Of Engagement Activity | 2022 |
| Description | OECD Global Forum on Productivity - Annual Conference - participated in panel discussion on "Organising work and industrial relations for productivity growth in the post-COVID world: the role of public policies" |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Panel discussion on technology adoption in light of crisis |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.oecd.org/global-forum-productivity/events/2021annualconferenceoftheglobalforumonproducti... |
| Description | Organised and hosted a workshop on Covid-19 and business technology adoption with key stakeholders from policy, academia and industry |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | This was an invitation-only event bringing together stakeholders from policy, industry and academia with shared interests in these topics. John Van Reenen set out the importance of the adoption of new technology and management practices for improving the productivity and resilience of UK firms; Anna Valero presented key findings from the new CEP-CBI survey on business technology adoption in response to Covid-19; and Tera Allas presented the results from the recent Be the Business & McKinsey report: The UK's Technology Moment. These short presentations were followed by a roundtable discussion chaired by Rain Newton-Smith which will be focused on what we know about the barriers to technology adoption, and how policy can address these - noting also the impact on workers - and the extent to which Covid-19 has changed things. Henry Overman provided some closing remarks. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://cep.lse.ac.uk/_new/events/event.asp?index=7686 |
| Description | Presentation and discussion with Toby Perkins MP |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Meeting with Shadow Front Bench Minister Toby Perkins, organised by LSE Public Affairs, at which Sandra McNally and I presented our relevant work on education and skills and discussed implications for policy. Ended with request for further information and keeping in touch. Discussed findings from a series of papers including the CVERDP033 on trends in on the job training, the Covid business technology adoption survey, Clean growth/recovery projects, and skills and management practices work. |
| Year(s) Of Engagement Activity | 2021 |
| Description | Presentation on technology adoption at policing conference |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Professional Practitioners |
| Results and Impact | Presentation on Digital Adoption in a crisis A Cityforum Policing Series - Riding the Waves of the Digital Revolution |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.cityforum.co.uk/event/virtual-a-cityforum-policing-series-riding-the-waves-of-the-digita... |
| Description | Presentation to shadow chancellor special advisors |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Invited to present our work on digital technology adoption to the Shadow Chancellor's team |
| Year(s) Of Engagement Activity | 2021 |
| Description | Press release accompanied our CEP Covid-19 analysis paper |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | A press release was sent out before our paper was published. A number of journalists covered out paper including The Times https://www.thetimes.co.uk/article/pandemic-turns-up-pace-of-workplace-innovation-cfnrz6bpx |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.thetimes.co.uk/article/pandemic-turns-up-pace-of-workplace-innovation-cfnrz6bpx |
| Description | The Impact of COVID-19 on Technology Adoption, Institute for the Future of Work blog |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | blog drawing on the Economics Observatory piece |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.ifow.org/news-articles/the-impact-of-covid-19-on-technology-adoption |
| Description | What Works to support business innovation in the COVID-19 recovery? What Works Centre for Local economic growth blog, Written by Capucine Riom |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Blog discussing findings from our report, in light of the wider evidence base on business support policies |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://whatworksgrowth.org/blog/what-works-to-support-business-innovation-in-the-covid-19-recovery/ |