In today’s hypercompetitive global economy, even the best manufacturers need to continuously boost productivity to survive. However, a growing number of pundits, activists and policymakers now argue that productivity causes job loss and therefore is bad for the economy. They are wrong.
Competitiveness, Innovation and Productivity: Clearing Up The Confusion
To listen to many economists, pundits and policymakers discuss the economics of growth it would be easy to be confused by the commonly used terms: competitiveness, innovation and productivity. These terms are often used almost interchangeably and with little precise meaning. To remedy the situation, this policy memo defines these terms and explains how each is important in driving economic prosperity.
Is Technological Change Speeding Up? How Can You Tell?
Technological change is important for our economy but it can be difficult to measure, because of our bias toward the present, because each change is different, and because technologies are complexly interrelated to our economy. We can get around these problems by measuring technological change in simplified ways--but none of the techniques are perfect.