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Draft report 5 - Technology adoption by firms

Future of work blue

New Zealand Productivity Commission

Date published

31 January 2020

Our fifth draft report, Technology adoption by firms, deals with the policies to encourage technological adoption. Decisions about whether and how to adopt technology are taken by individual firms. Many factors influence these decisions, but three important drivers are relative prices, risks, rewards and management capability. Government policies and infrastructure affect firm technology adoption decisions, sometimes in unexpected or unintended ways.

Protecting and extending business environment dynamism should be a priority of any government seeking to encourage technology adoption. There are some specific areas where government action could help remove barriers to, or increase the rewards for, technology adoption. These are discussed in the report.


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