Iām ambivalent about whether the barriers really are informational. When firms are surveyed, they claim to be much more advanced than they are, but my suspicion is that this is just a cope. They want to tell these World Bank surveyors that they are cool and advanced firms even if they know they are not. But it seems worth trying for sure.
In the Bloom study, they mention that information spillovers across firms are very limited, because owners guarded this information. But there were still local spillovers (to firms in the same town), possibly because of communication between workers at different firms.
Iām ambivalent about whether the barriers really are informational. When firms are surveyed, they claim to be much more advanced than they are, but my suspicion is that this is just a cope. They want to tell these World Bank surveyors that they are cool and advanced firms even if they know they are not. But it seems worth trying for sure.
In the Bloom study, they mention that information spillovers across firms are very limited, because owners guarded this information. But there were still local spillovers (to firms in the same town), possibly because of communication between workers at different firms.