ECON 2200 Lecture Notes - Lecture 24: Lean Manufacturing, Performance Management, Factor Endowment
14 May 2018
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Department
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ECON 2200
Lecture 24
• Productivity surged in the US because of information technology –
not just invention of it, but the innovation of it.
• European countries are behind the US because of the innovation the
US has had in regards to information technology. The Europeans
have the invention, but not innovation.
o Invention of electric motor was not as productive as the
innovation that Henry Rod placed on it with the assembly line.
• According to research, technology utilization is higher with the
American companies.
o More effective use of technology is due to:
▪ Merit-based promotion
▪ Employee autonomy
• Employees have more freedom to use technology
▪ Higher comfort level of IT
▪ Lean manufacturing techniques
▪ Performance management
▪ Mainly, it’s management practices
• The institutions changed over time – “institutions matter”.
• What caused different countries/colonies to develop different
institutions
o Simplistic answer: National heritage and culture
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Document Summary
Lecture 24: productivity surged in the us because of information technology not just invention of it, but the innovation of it, european countries are behind the us because of the innovation the. Us has had in regards to information technology. The europeans have the invention, but not innovation: invention of electric motor was not as productive as the innovation that henry rod placed on it with the assembly line, according to research, technology utilization is higher with the. British barbados and us colonies, were not both moving forward. Barbados was not as successful as us: factor endowment influences what a country specializes in. This can lead to income/wealth inequality and that can lead to political inequality. Elites evolve from the wealth/income/political inequality and then they establish institutions to preserve their power. The wealthy had many more children and end up creating the.
