Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319115 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17846
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We investigate the diffusion of frontier technologies across German firms before and during the Covid-19 crisis. Our analysis tracks the nature, timing, and pandemic-related motivations behind technology investments, using tailor-made longitudinal survey data linked to administrative worker--firm records. Technologies adopted after the onset of the pandemic increasingly facilitated remote work and mitigated the negative employment effects of the crisis. Overall, however, investments in frontier technologies declined sharply, equivalent to a loss of 1.4 years of pre-pandemic investment activity. This procyclical adoption pattern is particularly striking since the pandemic created clear incentives to experiment with new technologies. Our findings highlight how short-run fluctuations may influence medium-run economic growth through their impact on technology diffusion.
Subjects: 
cyclicality of technology adoption
firm-level survey data
frontier technology investments
Covid-19 crisis
JEL: 
O33
E22
E32
J23
Document Type: 
Working Paper

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