1: Worker Productivity
[Develop] better metrics for measuring worker productivity. Other Information:
Productivity enhancement is key to economic growth. One of the factors that enabled economic development in the 1990s was
productivity gains built on digital technology. The new technology associated with the Internet reduced communication and
transaction costs and helped workers become more productive. Businesses were able to operate more efficiently and the economy
as a whole experienced strong economic growth. To encourage better economic performance in the contemporary period, we need
better metrics for measuring worker productivity that more fully captures the 21st century economy. Current measures focus
on the efficiency of outputs from inputs in the production of goods and services. For instance, labor productivity is measured
as the total national output (Gross Domestic Product) per unit of labor (hours worked or employed workers). These measures
miss important aspects of the digital economy. Technology enables organizational reengineering on a large scale. It is crucial
to understand how technology adds value, saves money, and reduces production time. We need more nuanced production measures
other than worker hours or total employees in relation to GDP. Otherwise, it is hard to track operational efficiency in all
phases of production. In addition, there are aspects of our economy that have not fully embraced or been transformed by technology.
Education and health care represent two of the largest sectors that have not fully experienced the impact of transformational
digital change. In many respects (we still deliver education and health care in a similar manner as several decades ago).
In each area, there are policy barriers that stand in the way of adopting productivity-enhancing technologies. For example,
government licensing requirements sometimes stand in the way of advances in distance education and telemedicine. We need more
flexible licensing in order to overcome the limitations of geographically-based systems.
Objective(s):
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