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Résumé (français)

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Résumé (anglais)

This study investigates the adoption of digital technologies and cyber security mea-sures by Canadian firms, focusing on the balance between technological advancementand cyber security risks. We explore the extent of digital technology adoption, its varia-tion across industries, its impact on productivity, the trade-off with cyber security, andthe firm characteristics linked to technological efficiency and cyber security measures.Using data from Statistics Canada’s 2021 Canadian Survey of Digital Technology andInternet Use, as well as the 2021 Canadian Survey of Cyber Security and Cybercrime,we develop a Business Digital Usage Score to evaluate digital technology adoption rates.Additionally, a novel survey-weight-adjusted Lasso estimator for high-dimensional logitmodels identifies the firm-level factors linked to technological efficiency and cyber secu-rity breaches. The findings uncover a digital divide among Canadian firms, driven bydifferences in size, industry, and select firm characteristics. They also highlight the risksof adopting digital technologies too rapidly, as technological efficiency and cyber securitypractices vary greatly across firms and industries