Productivity of small and medium sized enterprises in Germany

The study examines the labor productivity of small and medium-sized enterprises (SMEs). Based on data from the IAB establishment panel, it can be seen that the productivity of larger companies is higher than that of SMEs. This gap has widened particularly since 2012. Such differences are more pronounced for manufacturing companies, while SMEs and large companies in the tertiary sector only hardly differ. Possible reasons are generally lower investment activity of SMEs compared to large companies, such as investments in information and communication technologies. In rural regions, the labor productivity of companies is lower than in urban areas, although SMEs are also less productive than large companies in these sub-regions.

Dienes, C.; Ivens, S.; Nielen, S.; Wolter, H.-J., Nüse, L. (2019): Produktivität von kleinen und mittleren Unternehmen in Deutschland, Band 7 der Serie "Produktivität für Inklusives Wachstum" im Auftrag der Bertelsmann Stiftung, Bielefeld.

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