Structural Dynamics in the Era of Smart Technologies

This chapter explores established approaches in the economic analysis of structural dynamics, in order to describe observed and potential changes in the economy triggered by automation and digitalisation. In particular, the discussion of mechanisation and computer-based automation by means of Classical Input-Output methods is complemented by an overview of recent empirical evidence on robot deployment. A Neoclassical framework of task-based skill-biased automation is considered in the light of empirical evidence on the routine intensity of tasks. Moreover, the emerging value of digital data is assessed through the lens of the System of National Accounts (SNA). Finally, the changing industry composition of the economy -- nuanced by the distinction between immaterial goods and services -- is explained by interacting mechanisms of Keynesian inspiration between sectoral productivity, demand and income dynamics.