Adoption, implementation, alignment – maximising the performance benefits of digital investment

Summary of TPI Firms Research Programme 2023-2026

This report co-authored by ERC Director Stephen Roper synthesises five research projects supported by The Productivity Institute (2023–2026) examining how digitalisation influences firms’ productivity, business model innovation, climate strategies, and investment decision-making. Drawing on UK wide surveys, international firm-level datasets, and in-depth qualitative studies, the evidence shows that while digital adoption is widespread, it rarely delivers productivity gains on its own.

Performance improvements depend critically on complementary investments in skills, organisational redesign, and, above all, strategic alignment. Across diverse contexts, the research highlights recurring “tipping point” dynamics, where excessive or misaligned digitalisation can reduce productivity. Digitalisation also supports more integrated climate mitigation and adaptation strategies, acting as an enabler rather than a determinant of outcomes.

The report concludes that policy should move beyond promoting adoption towards supporting alignment, coherence, and effective use of digital technologies.