Download The Age of Productivity: Transforming Economies from the by Inter-American Development Bank, carmen pages PDF

By Inter-American Development Bank, carmen pages

ISBN-10: 0230623522

ISBN-13: 9780230623521

Age of productiveness bargains a glance at how the low productiveness in Latin the United States and the Caribbean is combating the sector from catching up with the built international. The authors glance past the normal macro factors and dig right down to the and company point to discover the reasons.

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Extra resources for The Age of Productivity: Transforming Economies from the Bottom Up (Development in the Americas)

Sample text

Unfortunately, raising productivity is a complex task that requires identifying appropriate policies, understanding the conflicts between THE AGE OF PRODUCTIVITY 15 different objectives, securing the resources to implement the policies, dealing with those who would prefer the status quo or other policies, and maintaining sustained efforts in complementary areas until they bear fruit. It is such an uncertain task, which requires so much coordination, effort and patience, that it is rarely the priority of political systems.

Activity is concentrated in universities and public research centers, which, with valuable exceptions, have little influence on productive innovation and have a low scientific performance by international standards. Today’s deficiencies in innovation are the legacy of a first generation of policies that emphasized the supply of human capital and scientific infrastructure, ignoring demand and evaluation and neglecting connections with productive sectors. A second generation of policies in fashion during the last two decades attempted to fill this vacuum by creating incentives for innovation in firms, especially by means of innovation funds awarded by competition or through tax breaks.

93 times or roughly twice, and so would income). 15 While the income boost produced by closing the productivity gap in this simple accounting calculation is sizable, it would apparently leave most of the observed income gap intact. 2)? In what follows, this question is addressed to show that this accounting attribution severely underestimates the effect that closing the productivity gap would have in closing the income gap because it does not consider that factor accumulation would in turn react to the higher returns generated by an increase in productivity.

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