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The future is here, just not evenly distributed

by Alex Tabarrok on October 10, 2015 at 12:07 pm in Economics | Permalink

Chiara Criscuolo at HBR discusses a new research report from the productivity group at the OECD.

Our research shows that the slow productivity growth of the “average” firm masks the fact that a small cadre of firms are experiencing robust gains. OECD analysis shows that the productivity of the most productive firms – those on the “global productivity frontier” in economic terms—grew steadily at an average 3.5% per year in the manufacturing sector, or double the speed of the average manufacturing firm over the same period. This gap was even more extreme in services. Private, non-financial service sector firms on the productivity frontier saw productivity growth of 5%, eclipsing the 0.3% average growth rate. Perhaps more importantly, the gap between the globally most productive firms and the rest has been increasing over time, especially in the services sector. Some firms clearly “get it” and others don’t, and the divide between the two groups is growing over time.

- See more at: http://marginalrevolution.com/marginalrevolution/2015/10/the-future-is-here-just-not-evenly-distributed.html#sthash.qOIhfTdl.dpuf
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