Innovation and Productivity: What's The Relationship and How Does It Happen?
Innovation and Productivity: What's The Relationship and How Does It Happen?
Innovation and Productivity: What's The Relationship and How Does It Happen?
Innovation and Productivity: Whats the Relationship and How Does it Happen?
ATSE Forum Presented by: Rob Atkinson, President, ITIF
The Information Technology and Innovation Foundation (ITIF) is a Washington, D.C.-based think tank at the cutting edge of designing innovation policies and exploring how advances in technology will create new opportunities to boost economic growth and improve quality of life. ITIF focuses on: Innovation processes, policy, and metrics; E-transformation (e.g., commerce, government, health); IT and economic productivity; Science and technology policy related to economic growth; Manufacturing and innovation-based competitiveness; and Innovation and trade policy.
A productivity strategy is different than innovation strategy. The latter tend to focus on: creative, not creative destruction and traded sectors, rather than all sectors.
Todays Presentation
1 2 3 4 5 6
New Growth Theory and Innovation
Why We Need an Innovation-Productivity Policy General Purpose Technologies and Productivity: the Role of IT Three Paths to Productivity Through Innovation Comprehensive IT-Based Productivity-Innovation Policies The Political Economy of Innovation/Productivity
6
Todays Presentation
1 2 3 4 5 6
New Growth Theory and Innovation
Why We Need an Innovation-Productivity Policy General Purpose Technologies and Productivity: the Role of IT Three Paths to Productivity Through Innovation Comprehensive IT-Based Productivity-Innovation Policies The Political Economy of Innovation/Productivity
8
10
12
13
Todays Presentation
1 2 3 4 5 6
New Growth Theory and Innovation
Why We Need an Innovation-Productivity Policy General Purpose Technologies and Productivity: the Role of IT Three Paths to Productivity Through Innovation Comprehensive IT-Based Productivity-Innovation Policies The Political Economy of Innovation/Productivity
14
17
Period
Years
Technology System
Mercantile/craft
1840s to 1890s
Iron, Steam
Factory-based industrial
1890s to 1940s
Steel
Mass-production, corporate
1940s to 1990s
Electro-mechanical, chemicals
Entrepreneurial, knowledge-based
1990s to ??
ICT
18
Todays Presentation
1 2 3 4 5 6
New Growth Theory and Innovation
Why We Need an Innovation-Productivity Policy General Purpose Technologies and Productivity: the Role of IT Three Paths to Productivity Through Innovation Comprehensive IT-Based Productivity-Innovation Policies The Political Economy of Innovation/Productivity
19
20
2. Expanding high productivity firms faster than low. One study of Canadian manufacturing found that plant turnover from entry and exit contributes from 15% to 25% of manufacturing-labor productivity growth
Source: John R. Baldwin and Wulong Gu, Plant Turnover and Productivity Growth in Canadian Manufacturing, Statistics Canada, No. 11F0019MIE, No. 193 (April 2003): 9.
21
2.
22
Todays Presentation
1 2 3 4 5 6
New Growth Theory and Innovation
Why We Need an Innovation-Productivity Policy General Purpose Technologies and Productivity: the Role of IT Three Paths to Productivity Through Innovation Comprehensive IT-Based Productivity-Innovation Policies The Political Economy of Innovation/Productivity
23
24
25
26
Service Blueprinting
27
Source: V. Zeithaml, M.J. Bitner, D. Gremler, Services Marketing: Integrating Customer Focus Across the Firm, 4th ed., McGraw Hill, 2006
28
29
30
31
32
Applying IT to Operations
1. Equip bell hops, concierges, room service, and repair personnel with handheld devices informing them and allowing them to confirm fulfillment of specific room service requests. Puts knowledge of customer needs into the hands of your professionals, provides method to validate that customer service needs have been met.
34
35
36
37
38
39
40
41
42
Profitability
44
45
Todays Presentation
1 2 3 4 5 6
New Growth Theory and Innovation
Why We Need an Innovation-Productivity Policy General Purpose Technologies and Productivity: the Role of IT Three Paths to Productivity Through Innovation Comprehensive IT-Based Productivity-Innovation Policies The Political Economy of Innovation/Productivity
46
Puts innovation and growth at center of economic policy. Focuses on institutions (e.g., firms, universities, governments) and not just market exchanges mediated by price. Maximizes growth with proactive and strategic public policies to spur innovation.
48
Robert Atkinson
Thank You
Follow ITIF:
www.innovationpolicy.org