OECD Science, Technology and Industry Working Papers
The OECD Directorate for Science, Technology and Innovation (STI) leads OECD research on the contribution of science, technology and industry to well-being and economic growth. STI Working Papers cover a broad range of topics including definition and measurement of science and technology indicators, global value chains, and research on policies to promote innovation. These technical or analytical working papers are prepared by staff or outside consultants to share early insights and elicit feedback.
- ISSN: 18151965 (online)
- https://doi.org/10.1787/18151965
Mark-ups in the digital era
This paper examines the evolution of firm mark-ups across 26 countries for the period 2001-14. It also discusses and investigates empirically how this can be related to the degree of digital transformation in sectors. Four main facts emerge: i) mark-ups are increasing over the period, on average across country; ii) this result is driven by firms at the top of the mark-up distribution, while the bottom half of the distribution exhibits a flat trend over time; (iii) mark-ups are higher in digital-intensive sectors than in less-digitally intensive sectors; (iv) mark-up differentials between digitally-intensive and less-digitally-intensive sectors have increased significantly over time.
Keywords: Digitalization, Technological Change, Market Power, Mark-Ups
JEL:
L2: Industrial Organization / Firm Objectives, Organization, and Behavior;
L1: Industrial Organization / Market Structure, Firm Strategy, and Market Performance;
D2: Microeconomics / Production and Organizations;
O33: Economic Development, Innovation, Technological Change, and Growth / Innovation; Research and Development; Technological Change; Intellectual Property Rights / Technological Change: Choices and Consequences; Diffusion Processes
- Click to access:
-
Click to download PDF - 1.54MBPDF
-
Click to Read online and shareREAD