Productivity paradox
13 نوفمبر 2021 2021-11-11 23:37Productivity paradox
Mention shortly what is meant by the productivity paradox and its most important implications
Large investments in computers everywhere: universities, companies, and government units
Great ability to save and process a huge amount of data Huge increase in the productivity of individuals
However, at the corporate level these developments do not translate into a tangible increase in profits
at the macro level, the improved productivity is not reflected as a significant increase in GDP
This concept refers to the slowdown in productivity growth despite the rapid development in technology during the same period of time
he productivity paradox defined as : low growth in productivity despite a seeming explosion of technological innovation
possible causes of the productivity paradox
• Mis-measurement – The gains are real but our current measures miss them.
• Redistribution – There are private gains, but they come at the expense of other firms and individuals, leaving little net gain.
• Time lags – The gains take a long time to show up.
• Mismanagement – There are no gains because of the unusual difficulties in managing IT or information itsel
.the productivity paradox defined as : low growth in productivity despite a seeming explosion of technological innovation
possible causes of the productivity paradox
• Mis-measurement – The gains are real but our current measures miss them.
• Redistribution – There are private gains, but they come at the expense of other firms and individuals, leaving little net gain.
• Time lags – The gains take a long time to show up.
• Mismanagement – There are no gains because of the unusual difficulties in managing IT or information itself.
Large investment in computer everywhere : companies and government
Great ability to save huge amount of data
at corporate level these amount of development don’t translate into tangible increase in the profit
At macro level the improved productivity isn’t reflected in increase GDP
