The Digital Economy and the Productivity Paradox

Despite the billions of dollars invested in digitalization, productivity growth in developed economies remains sluggish and the promised technological revolution has yet to deliver its full potential. This concise book questions why digitalization is not translating into higher productivity and econ...

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Main Authors: Włodarczyk, Michał, Wisła, Rafał
Format: Online
Jezik:angleščina
Izdano: Taylor & Francis 2025
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Online dostop:ONIX_20251024T090950_9781040558027_8
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author Włodarczyk, Michał
Wisła, Rafał
author_browse Wisła, Rafał
Włodarczyk, Michał
author_facet Włodarczyk, Michał
Wisła, Rafał
author_sort Włodarczyk, Michał
collection Directory of Open Access Books
description Despite the billions of dollars invested in digitalization, productivity growth in developed economies remains sluggish and the promised technological revolution has yet to deliver its full potential. This concise book questions why digitalization is not translating into higher productivity and economic expansion, exploring this paradox through the lens of Schumpeter's creative destruction hypothesis. The book diagnoses and analyses the digital economy as the next stage of socio-economic evolution, with a particular focus on the penetration of digital technologies in the industrial economy. It is geographically limited to the countries of the European Union and the United Kingdom, forming a set of 28 highly developed economies. These countries, characterized by a homogeneous institutional order and varying levels of economic development provide excellent material for testing and verifying economic hypotheses, including Schumpeter's theory of creative destruction. In relation to Schumpeter's theory, there is indeed an observed development of a new sector around a technology that is a radical innovation - the Internet - and the development of technologies based on it, AI, blockchain, cloud computing, etc. However, the rate of technical progress is reaching values close to zero, despite the fact that creative destruction should manifest itself in leaps in productivity. The second point of contention with Schumpeter's theory is the question of oligopolies, which should be the environment most conducive to innovation. However, in the case of the digital economy, productivity growth is most strongly influenced by small and micro-enterprises, which may point to different factors of production than in previous industrial revolutions. This is a practical guide for researchers and advanced students of economics.
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spelling doab-20.500.12854ir-1686662025-10-25T05:06:08Z The Digital Economy and the Productivity Paradox Włodarczyk, Michał Wisła, Rafał Aggregate Macroeconomic Effects Digital Transition and European Union Economies Digital Economy Digital Society Digitalisation Productivity paradox J. A. Schumpeter's theory of creative destruction thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJM Management and management techniques::KJMV Management of specific areas::KJMV6 Research and development management thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCD Economics of industrial organization thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCJ Economic forecasting Despite the billions of dollars invested in digitalization, productivity growth in developed economies remains sluggish and the promised technological revolution has yet to deliver its full potential. This concise book questions why digitalization is not translating into higher productivity and economic expansion, exploring this paradox through the lens of Schumpeter's creative destruction hypothesis. The book diagnoses and analyses the digital economy as the next stage of socio-economic evolution, with a particular focus on the penetration of digital technologies in the industrial economy. It is geographically limited to the countries of the European Union and the United Kingdom, forming a set of 28 highly developed economies. These countries, characterized by a homogeneous institutional order and varying levels of economic development provide excellent material for testing and verifying economic hypotheses, including Schumpeter's theory of creative destruction. In relation to Schumpeter's theory, there is indeed an observed development of a new sector around a technology that is a radical innovation - the Internet - and the development of technologies based on it, AI, blockchain, cloud computing, etc. However, the rate of technical progress is reaching values close to zero, despite the fact that creative destruction should manifest itself in leaps in productivity. The second point of contention with Schumpeter's theory is the question of oligopolies, which should be the environment most conducive to innovation. However, in the case of the digital economy, productivity growth is most strongly influenced by small and micro-enterprises, which may point to different factors of production than in previous industrial revolutions. This is a practical guide for researchers and advanced students of economics. 2025-10-25T05:06:07Z 2025-10-25T05:06:07Z 2025-10-24T07:12:58Z 2025 book ONIX_20251024T090950_9781040558027_8 https://library.oapen.org/handle/20.500.12657/107918 9781040558027 9781041119067 9781040618530 9781003662181 https://directory.doabooks.org/handle/20.500.12854/168666 eng Routledge Studies in the Economics of Innovation open access image/jpeg n/a https://library.oapen.org/bitstream/20.500.12657/107918/1/9781040558027.pdf Taylor & Francis Routledge 10.4324/9781003662181 10.4324/9781003662181 fa69b019-f4ee-4979-8d42-c6b6c476b5f0 9781040558027 9781041119067 9781040618530 9781003662181 Routledge 210 Oxford open access
spellingShingle Aggregate Macroeconomic Effects
Digital Transition and European Union Economies
Digital Economy
Digital Society
Digitalisation
Productivity paradox
J. A. Schumpeter's theory of creative destruction
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJM Management and management techniques::KJMV Management of specific areas::KJMV6 Research and development management
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCD Economics of industrial organization
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCJ Economic forecasting
Włodarczyk, Michał
Wisła, Rafał
The Digital Economy and the Productivity Paradox
title The Digital Economy and the Productivity Paradox
title_full The Digital Economy and the Productivity Paradox
title_fullStr The Digital Economy and the Productivity Paradox
title_full_unstemmed The Digital Economy and the Productivity Paradox
title_short The Digital Economy and the Productivity Paradox
title_sort digital economy and the productivity paradox
topic Aggregate Macroeconomic Effects
Digital Transition and European Union Economies
Digital Economy
Digital Society
Digitalisation
Productivity paradox
J. A. Schumpeter's theory of creative destruction
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJM Management and management techniques::KJMV Management of specific areas::KJMV6 Research and development management
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCD Economics of industrial organization
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCJ Economic forecasting
topic_facet Aggregate Macroeconomic Effects
Digital Transition and European Union Economies
Digital Economy
Digital Society
Digitalisation
Productivity paradox
J. A. Schumpeter's theory of creative destruction
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCA Economic theory and philosophy
thema EDItEUR::K Economics, Finance, Business and Management::KJ Business and Management::KJM Management and management techniques::KJMV Management of specific areas::KJMV6 Research and development management
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCZ Economic history
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCB Macroeconomics
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCD Economics of industrial organization
thema EDItEUR::K Economics, Finance, Business and Management::KC Economics::KCJ Economic forecasting
url ONIX_20251024T090950_9781040558027_8
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