A0519
Title: Digital adoption and cyber security
Authors: Joann Jasiak - York University (Canada) [presenting]
Pujee Tuvaandorj - York University (Canada)
Abstract: The aim is to examine how Canadian firms balance the benefits of technology adoption against the rising risk of cybersecurity breaches. Data from the 2021 Canadian Survey of Digital Technology and Internet Use and the 2021 Canadian Survey of Cyber Security and Cybercrime are merged to investigate the trade-off firms face when adopting digital technologies to enhance productivity and efficiency, balanced against the potential increase in cyber security risk. The analysis explores the extent of digital technology adoption, differences across industries, the subsequent impacts on efficiency, and associated cybersecurity vulnerabilities. Aggregate variables are built, such as the business digital usage score and a cybersecurity incidence variable, to quantify each firm's digital engagement and cybersecurity risk. A survey-weight-adjusted Lasso estimator is employed, and a debiasing method for high-dimensional logit models is introduced to identify the drivers of technological efficiency and cyber risk. The analysis reveals a digital divide linked to firm size, industry, and workforce composition. While rapid expansion of tools such as cloud services or artificial intelligence can raise efficiency, it simultaneously heightens exposure to cyber threats, particularly among larger enterprises.
