American Economic Senate

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Research subject

Innovation and Productivity

Research on the diffusion of technology, the organization of production and the sources of improvements in economic efficiency.

Server racks inside the Amravati data center in India.
Server racks inside the Amravati data center in India. · Image credit

From invention to productive use

A technological capability creates an opportunity. Its contribution to output depends on adoption, complementary investment, organizational change and the tasks to which it is applied. Expenditure on equipment or software does not measure the productivity improvement by itself.

Measurement and economic value

Labor productivity relates output to labor input; multifactor productivity addresses a broader set of inputs under a specified accounting framework. Changes in industry composition, hours, capacity utilization and measured capital can influence the interpretation.

Research distinguishes a firm’s operational result from an industry average and an aggregate productivity estimate. The relevant denominator and price measure are part of the economic question.

Selected research

Research Report

Explaining productivity differences across the Atlantic

This report separates sector composition, capital intensity, and working time in transatlantic productivity comparisons. Official evidence and a reproducible decomposition show why differences within industries require closer examination before aggregate gaps support policy conclusions.

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Research Report

From computing investment to productive adoption

Official surveys measure different stages of AI adoption. Evidence from the United States, Korea, and Japan and a reproducible workflow calculation distinguish computing expenditure, reported use, labor savings, accepted output, and investment returns.

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Research in this subject

9 publications

Diffusion, competition and skills

Technology spreads through investment, supplier relationships, workers and the entry and growth of firms. Competition can support adoption while adjustment imposes costs on particular firms and tasks. Skills, finance and infrastructure affect which enterprises can put a capability to use.

Research connections

Industry research examines complementary capacity and investment. Labor and demographics addresses task changes, participation and skills. Data notes examine indicators used to assess economic performance.