Despite the fact that most economists agree that increasing productivity is the most important goal for economic policy, few scholars have actually focused on what drives productivity and what governments can do. An exception to this is Bill Lewis, founding director of the McKinsey Global Institute and former partner at McKinsey & Company. At this ITIF Forum, Lewis discusses the results of his research and presents the findings from his book, The Power of Productivity: Wealth, Poverty, and the Threat to Global Stability. See video, presentation slides, and other details from the recent event.

A report examining broadband promotion policies in 9 nations finds that while we shouldn’t look to other nations for silver bullets or assume that practices in one nation will automatically work in another, U.S. policymakers can and should learn from broadband “best practices” in other nations. Emulating the right policies here will enable the U.S. to increase our broadband performance faster than in the absence of proactive policies. Based on the findings from other nations, the report proposes 11 policy recommendations to spur both deployment of more ubiquitous and faster networks and adoption of broadband by consumers.

Released within the new report, Explaining International Broadband Leadership, the 2008 ITIF Broadband Rankings are a composite measure of national broadband performance.

There is disturbing evidence that America's innovation lead is shrinking. Moreover, expanded support for basic research and science education, while important, will not be enough to respond to this challenge. Without a more robust, targeted, and explicit federal innovation policy, U.S. competitiveness will continue to slip and economic growth will lag. In a new report, the Information Technology and Innovation Foundation and the Brookings Metropolitan Policy Program argue that a critical step in that direction is the establishment of a National Innovation Foundation - a nimble, lean and collaborative entity devoted to supporting firms and other organizations in their innovative activities.

There have been surprisingly few attempts to catalogue what is known about the economic impact of information and communications technology (IT). In a new report, ITIF does just that, examining the impact of IT in five key areas: 1) productivity; 2) employment; 3) more efficient markets; 4) higher quality goods and services; and 5) innovation and new products and services. The report finds that the integration of IT into virtually all aspects of the economy and society is creating a digitally-enabled economy that is responsible for generating the lion's share of economic growth and prosperity, both here and abroad, including in developing nations. Importantly, the "IT engine" does not appear likely to run out of gas anytime soon and should power robust growth for at least the next decade, provided that policy makers take the right steps. Toward that end the report lays out five key public policy principles for driving digital prosperity: 1) give the digital economy its due; 2) actively encourage digital innovation and transformation of economic sectors; 3) use the tax code to spur IT investment; 4) encourage universal digital literacy and adoption; and 5) do no harm.

In a report sponsored by the Ewing Marion Kauffman Foundation, ITIF employs 26 indicators to assess the extent to which the 50 state economies are structured according to the tenets of the New Economy. The changing economic landscape requires state economies to be innovative, globally-linked, entrepreneurial and dynamic, with an educated workforce and all sectors embracing the use of information technology. The report, which updates and expands on the 2002 State New Economy Index, ranks the states accordingly. The five states ranking the highest in 2007 are, in order of rank, Massachusetts, New Jersey, Maryland, Washington, and California. With these measures as a frame of reference, the report then outlines the next generation of innovative state-level public policies needed to meet the challenges of the New Economy and boost incomes of all Americans.

The Past and Future of America’s Economy focuses on how periodic cycles of technological and economic change have fundamentally reordered the way we work, the organization of business and markets, and the role of government. It examines this process of change over the past 150 years and explores the responses of people and institutions. The book then analyzes today’s New Economy, including the new information technology system, and effects on markets, organizations, workers, and governance. Taking into account the historical record, the book discusses the shortcomings of prevailing liberal and conservative economic doctrines and lays out a new growth economics agenda aimed at maximizing the productivity and innovation-enhancing forces of the New Economy.