Firms are at the forefront of digital transformation and drive production, innovation and the greater deployment of digital technologies into economies and societies. As digital transformation progresses, how firms use data, and how that use affects markets and influences competitive dynamics, has risen to the top of policy agendas. This report highlights that too few firms use data, particularly small and medium-sized enterprises, despite data’s potential to boost productivity, foster innovation and new business models. This report analyses how this uneven use of data affects productivity dispersion, industry concentration and shape competitive dynamics in markets. Finally, the report outlines key policy lessons to increase the ability of the full business population to thrive in the data-driven age and enhance long-term prosperity and welfare.