Workforce age and technology adoption in small and medium-sized service firms

This paper provides empirical evidence on the relationship between the age structure of the workforce and the adoption of new or significantly improved technologies. Moreover, it attempts to identify the role of teamwork in this relationship. The econometric analysis is based on data of 356 small and medium-sized German firms from the knowledge-intensive services and ICT services sectors. The results show that, compared to employees younger than 30 years, an older workforce is negatively related to the probability of technology adoption. On the contrary, the dispersion of the employees’ age within the workforce seems not to be connected with the probability of technology adoption. However, in firms with intensive use of teamwork a homogenous workforce in terms of age is positively related to the probability of technology adoption.