International Productivity Monitor (Apr 2016)
New and Promising Ideas in the Productivity Field: Review Article on "Think Like an Enterprise: Why Nations Need Comprehensive Productivity Strategies" by Robert Atkinson
Abstract
The most interesting part of Robert Atkinson’s (President of the Information Technology and Innovation Foundation (ITIF)) manifesto on productivity is his recommended productivity strategy for strengthening productivity growth. Atkinson concludes that socalled framework policies are necessary but far from sufficient. The more active public policy role he calls for would include measures to lower the price of capital, moral suasion of firms to think more strategically, more direct government involvement in developing and disseminating new technologies and facilitating interactions across firms and sectors. Many will share Atkinson’s view that different approaches to enhancing productivity growth are in order given the modest productivity records of many countries of late. But it is troubling that Atkinson does not suggest more stringent tests for new policy interventions. They must be subject to benefit-cost analysis to determine whether there is a net social benefit. The experiences countries have had with elements of what Atkinson recommends must be studied to see if they have yielded productivity gains.
