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Research program

National Competitiveness and Productivity Initiative

Productivity measures real output relative to specified inputs, such as hours worked or a combined measure of labor and capital. National competitiveness also depends on the capabilities that allow businesses to maintain quality, respond to customers, replace essential inputs, and invest through changing conditions. This initiative studies those capabilities and the institutions supporting their development, with American production examined in an international setting.

The agenda connects national and industry evidence with the economics of the operating establishment. It asks where a production constraint arises, which investment can remove it, and how a gain at one business relates to suppliers, workers, consumers, and competing firms.

Explain the performance difference

International productivity comparisons provide a starting point for diagnosis. Industrial composition, capital intensity, working time, prices, and performance within comparable industries can all affect the result. The appropriate response depends on which element is responsible and whether the measured difference persists across a relevant period.

Explaining productivity differences across the Atlantic separates these components and examines the importance of differences within industries. The report directs attention toward operating practices, investment, utilization, and complementary inputs once the statistical comparison has been established.

The initiative uses that distinction to frame policy questions. Does a weak result reflect an industry moving through a demand cycle, the age and availability of equipment, or a difficulty adopting a better process? Would greater entry, improved networks, workforce development, or a different investment address the identified problem? A ranking is most useful when it leads to a testable explanation.

From an asset purchase to an operating process

Manufacturing investment acquires several kinds of assets. Structures create space; equipment and intellectual property provide productive functions; commissioning and connections make them usable together. Their expenditure and operating dates can differ substantially.

Manufacturing investment within the US national accounts reconciles these asset classes and production stages. The analysis supports a capability assessment that follows the complete installation, including replacement and the condition of the existing capital stock. A construction expenditure series is valuable evidence within that account, while production and utilization establish a different part of the result.

For technology, the decisive transition occurs within the workflow. From computing investment to productive adoption examines access, use, integration, verification, and accepted output. Time released from a task can improve service, support additional production, or remain unused. The investment return depends on what the organization does with that capacity and on the full cost of delivering an acceptable result.

Infrastructure at the point of production

Reliable electricity and network access determine when productive capital can operate. A plant's requirements include the quality and continuity of service, the timing of its connection, and the available response to interruption. These requirements vary with the process and its tolerance for downtime.

Energy reliability in the economics of industrial location compares the relevant cost components through disclosed operating scenarios. It shows why backup resources can have value even when they raise purchased-energy expenditure, and why connection delay belongs in the appraisal of the entire investment.

This strand studies coordination among infrastructure providers, industrial users, and project authorities. It asks whether an announced network improvement supplies the specific service a project needs, whether several users compete for the same capacity, and how a credible demand pipeline affects supplier investment. The objective is a functioning production system with a realistic operating timetable.

Specialized knowledge and supplier continuity

Industrial capability resides partly in equipment and partly in people, routines, technical relationships, and the ability to resolve problems. An experienced maintenance worker or a small specialist supplier can be critical to a much larger production network. Replacing a headcount or installing automation can leave that capability unresolved.

Manufacturing capability in aging economies uses Japanese and German evidence to examine skills, automation, knowledge transfer, and supplier continuity. It develops a production-line account in which the location of a bottleneck determines the value of an intervention.

The program therefore examines diffusion as well as frontier innovation. Which businesses can adopt a demonstrated process? What finance, training, standards, and customer relationships support adoption? How long does a supplier need to qualify a product and sustain delivery? These questions connect investment policy with the depth and resilience of the surrounding production network.

Public support and competitive outcomes

Industrial assistance changes incentives through award terms, eligible costs, milestones, and the timing of payment. Assessing the conditions attached to semiconductor support examines the U.S. CHIPS funding framework and documented award amendments. The analysis requires the actual conditions to remain visible when evaluating progress.

The initiative follows effects beyond recipients. A supported facility can increase capacity, alter location, displace another supplier, or accelerate an investment. Its national contribution depends on the resulting domestic value, capability, competition, and cost of public resources. Support may address a coordination problem or knowledge benefit; the case should specify that mechanism and identify what successful adjustment would look like.

Evidence from the operating establishment

Evaluation combines matched activities, project records, and operational measures appropriate to the question. Quality, defects, downtime, delivery, and input use can explain a result that an aggregate productivity series alone leaves unresolved. What a productivity residual can establish provides the accounting discipline needed before a residual is attributed to a named technology or policy.

A comparison of establishments should retain the product specification and the service supplied to the customer. Faster processing can be valuable when it improves reliable delivery; a larger case count can conceal additional defects or rework. Evidence on resource use, accepted quality, and the use of released capacity identifies which improvement has occurred. Aggregation can then examine how widely that improvement has spread and how much of the industry it represents.

Continue the inquiry

Start with the transatlantic productivity report to establish the comparison. Follow manufacturing investment into computing adoption and reliable industrial service. The aging-economy study then brings specialized labor and supplier continuity into the same production system; the semiconductor brief examines the public-support contract.

The innovation collection provides the wider subject literature. Workforce access and transitions belong with the employment initiative, while the design and evaluation of support connect to the institutional innovation program. All programs provides the complete agenda.

Selected research

Program publications

54 publications

Comparative Study

Two routes to industrial expansion

Infrastructure coordination and resource processing expand industry through different mechanisms. Indian planning evidence and Indonesia’s downstream strategy are compared through complementary inputs, domestic value creation and explicit project accounts rather than export or construction totals alone.

Comparative Study

Manufacturing capability in aging economies

Japanese manufacturing strategies and German training evidence highlight the interaction of automation, specialized skills, and supplier continuity. A production-line example shows how bottlenecks, maintenance knowledge, and quality determine whether investment preserves capability as the workforce ages.

Economy Study

Mexico's place in North American production

Mexico's manufacturing exports combine domestic production with imported intermediates. INEGI's export-content methodology clarifies the distinction between direct value added, domestic procurement, and full supply-chain income, providing a basis for assessing deeper North American production linkages.

Economic Explainer

Capacity, production and utilization

Installed capacity, actual production and economically sustainable output measure different constraints. A plant-level example separates engineering limits, operating schedules and commercial conditions before interpreting capacity utilization or announced industrial investment.

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