American companies use IT more effectively than their European counterparts, leading to a greater surge in productivity, according to researchers at the Center for Economic Performance at the London School of Economics.
Productivity growth in the United States accelerated to about 2.5 percent a year from 1995 to 2000, up from 1.4 percent a year from 1974 to 1995. Productivity grew at around 1.4 percent a year, the New York Times reports. And it’s been growing ever since, particularly in the last few years. But Europe, which has access to the same IT the U.S. does, saw productivity growth stagnate in the late ’90s.
Details from the study can be dowloaded here.