The Solow Absurdity.
Technology continues to squeeze product life cycles from years to months, and in a number of cases weeks. The world-manufacturing sector is in recession. Named after the Nobel laureate in economics, it was stated by him thus : “You can see the PC age everywhere nowadays, apart from in the productivity statistics”. Not only has productivity expansion in non-durable producing decelerated in 1995-9 compared with 1972-95, but productivity expansion in sturdy manufacturing stripped of PCs has decelerated far more. ” what should ideally be remained true - the ballyhoo or the gloomy statistics? The solution to this query is of critical seriousness to economies in transition. If investment in IT ( info technology ) basically RETARDS expansion - then it need to be avoided, at least till a working market-place is there to deal with its expansion suppressing effects. When you look at corporations that regularly grow, you will find that they invest smartly in their RD programs during doubtful commercial times. Winners keep connected with consumers - augment their purchasing experience it is usually about the customer. Firms start to discover ways to reduce costs and typically this implies reduced service to the client.
