Diffusion of new knowledge benefits firms' productivity

Analysis – September 2017 – No. 18

Authors Kristoffersen, Mark Strøm; Spange, Morten; Malthe-Thagaard, Sune
Subject Danish Economy; Productivity and competitiveness; Economic activity and employment
Type Analysis
Year 2017
Published 29 September 2017
Productivity growth in the Danish economy since 1995 has been lower than previously. This reflects weak productivity growth in services, while manufacturing has maintained its strong momentum. The decline in productivity growth is an international trend. Growth in aggregate productivity is broad-based in Denmark. It is not only driven by a small group of high-productivity firms. This indicates diffusion of knowledge and technological advances. Productivity levels vary considerably across firms within the same industry.