From Skills Revolution to Productivity Miracle--Not as easy as it Sounds?
This article surveys the potential impact of skill on productivity. It opens with a review of the utility of productivity as a measure of systemic economic performance, and then goes on to explore the oft-assumed close and strong relationship between skills and productivity. The importance of other factors and types of investment is stressed. These complementary elements may be at least as important as skill in boosting performance, and their absence may negate the impact of public investment in education and training. The ability of economic development policy, particularly as it relates to the Regional Development Agencies, to address skills and economic development is assessed, and questions are raised about what type and level of skill might have the largest impact on economic performance. In conclusion, we discuss the demands that new policy approaches are making upon the machinery and personnel of government. Copyright 2006, Oxford University Press.
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