In this essay, we focus our attention into the role played by R&D as well as digitalization in labor productivity and labor productivity growth developments during the last decade. We begin by classifying firms and sectors according to their R&D intensity as laid out in Galindo- Rueda and Verger (2016). This framework allowed us to disentangle manufacturing from nonmanufacturing activities, both of which are them grouped into five different categories (high, medium-high, medium, medium- low, and low R&D intensity industries). Moreover, we rely on the structure provided by Calvino et al. (2018) to classify industries according to their level of digital intensity (high, medium-high, medium-low and low digital intensive industries).
