Governments are reexamining technology as industrial policy increasingly confronts an era defined by artificial intelligence and uneven economic gains.
Dr. Michael Mandel, chief economist and vice president at the Progressive Policy Institute, told Competition Policy International (CPI), a PYMNTS company, in an interview that the core issue is not whether innovation is occurring, but where its benefits are accumulating.
“We’ve got rapid productivity growth in the information sector,” he said, “but productivity growth in the physical sector has slowed down to close to zero.” That divergence has left entire industries and regions lagging, creating what he described as both an economic and political problem that now sits at the center of industrial policy.
