---
title: "Productivity Divergence – Frontier Firms vs. the Others"
authors:
  - name: "Pajarinen, Mika"
    url: "https://www.etla.fi/henkilot/pajarinen-mika/"
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  - name: "Rouvinen, Petri"
    url: "https://www.etla.fi/henkilot/rouvinen-petri/"
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  - name: "Ylhäinen, Ilkka"
    url: "https://www.etla.fi/henkilot/ylhainen-ilkka/"
    sameAs:
      - "https://orcid.org/0009-0009-1199-5780"
date_published: "2017-10-13"
series: "ETLA Raportit - Reports"
series_number: "77"
issn:
  - "2323-2447"
  - "2323-2455"
jel_codes:
  - "D22"
  - "O30"
  - "O40"
language: "fi"
publisher: "ETLA Economic Research"
pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-77.pdf"
identifier: "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-77"
abstract_translations:
  en: "International literature suggests that productivity growth of the global frontier firms – those in the best five percent – has diverged from the others during the 2000s. We study this issue using Finnish firm-level data. We find that the productivity of the Finnish frontier firms does not diverge from the others to such a degree as in the international comparisons. The findings do not provide clear evidence of a slowdown in the diffusion process. We also analyze whether frontier firms are associated with characteristics related to digitalization – and do not find clear evidence of that either. This might be related to the fact that the employed measures are related to technology adoption – not to the creativity or efficiency of its use."
---

# Productivity Divergence – Frontier Firms vs. the Others

**Published:** 2017-10-13  
**Categories:** Publications, Reports  
**URL:** https://www.etla.fi/en/publications/tuottavuuskehityksen-eriytyminen-karkaavatko-eturintaman-yritykset-muilta/

#### Abstract

International literature suggests that productivity growth of the global frontier firms – those in the best five percent – has diverged from the others during the 2000s. We study this issue using Finnish firm-level data. We find that the productivity of the Finnish frontier firms does not diverge from the others to such a degree as in the international comparisons. The findings do not provide clear evidence of a slowdown in the diffusion process. We also analyze whether frontier firms are associated with characteristics related to digitalization – and do not find clear evidence of that either. This might be related to the fact that the employed measures are related to technology adoption – not to the creativity or efficiency of its use.

---

## Additional Information

**Kirjoittajat:** Pajarinen, Mika - Rouvinen, Petri - Ylhäinen, Ilkka

**Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-raportit-reports-77-kansi.jpg

**Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-77.pdf

**Key Words:** Productivity, Divergence, Diffusion,Ddigitalization, Finland

**Jel:** D22, O30, O40

**Paivays:** 13.10.2017

**Sivuja:** 12

**Kieli:** fi

**Sarja:** ETLA Raportit - Reports

**Sarja Nro:** 77

**Issn:** 2323-2447, 2323-2455 (Pdf)

**Saatavuus:** 2

**Publication Research:** No



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