Technology adoption, training and productivity performance

Advanced technologies are commonly thought to be complementary to skills. Firms that adopt new technologies (for example, computer-aided design and control) and at the same time invest in skills (for example, training in computer literacy and technical skills) are expected to realize greater productivity gains than those that do not. To validate this expectation, this paper first identifies the combinations of technologies and types of training that are commonly undertaken by firms, presumably as part of their strategies to effectively utilize the adopted technologies and to improve their economic performance. This paper then estimates the relationship between these common technology-training combinations and productivity performance. It shows that these combinations are associated with higher productivity.