If “advanced industries” are defined as the 50 most R&D- and STEM-worker intensive industries, there is a substantial differential, now exceeding 100%, between their productivity and that of “non-advanced industries”, as shown in the following graph:
The compound annual growth rate (CAGR) during the past 25 years (1980-2015) has been 2.7% for “advanced industries”, compared to 1.0% for “non-advanced industries”.
- Given this evidence, is bringing back lost manufacturing jobs smart policy?
- What policies help workers migrate to more productive “advanced industries”?
- What policies can accelerate diffusion of innovation from “advanced industries” to lagging but nonetheless essential “non-advanced industries”?