From a recent blog by The Conference Board – Blaming the productivity slowdown on measurement issues takes our eyes off the ball:
The key factor to drive productivity is investment. In the 1990s it turned out that, once we measured the price changes for investments in computers and software well, we did find their impacts on productivity growth. Today, more than at that time, we need to focus on the complementary investment in intangible investments. Concerns about measurement might as well focus on those types of investments which are only partially measured as investment to begin with. The capitalization of R&D and software in the National Income and Product Accounts is an important step forward. But only once the other spending on intangibles, including workforce training, organizational innovations and marketing and branding, is also treated as investment rather than expenditure, we will get a sharper view of where the productivity gains from new technology have ended up.