Demography

Philosophy

Chromatography

Census

Economics

Empirical evidence

Business

Public economics

Epistemology

Econometrics

Productivity

Population

Sociology

Chemistry

Sample (material)

Economic growth

American Economic Review

We provide a systematic empirical study of the diffusion and adoption patterns of data-driven decision making (DDD) in the U.S. Using data collected by the Census Bureau for a large representative sample of manufacturing plants, we find that DDD rates nearly tripled (11%-30%) between 2005 and 2010. This rapid diffusion, along with results from a companion paper, are consistent with case-based evidence that DDD tends to be productivity-enhancing. Yet certain plants are significantly more likely to adopt than others. Key correlates of adoption are size, presence of potential complements such as information technology and educated workers, and firm learning.

The Rapid Adoption of Data-Driven Decision-Making