Challenge of new technology

This book describes some of the effects on economic life so far, and outlines the nature of the challenges which new technology poses for firms, governments, trade unions and individual workers.

New technology is enabling, not determining. The productivity of identical technology in different factories can vary greatly. Japanese productivity advantages are not due primarily to a superior degree of automation of their production lines. Rather, the lesson to be learned from experience is that the successful application of new technology depends on the human factor, i.e. on communications, training and human relations within the firm.

There is no evidence that new technology is de-skilling. On the contrary, most operators feel that their status and working conditions are improved by its adoption and therefore the attitude of individual workers towards new technology is generally favourable. Trade unions in the private sector are less hostile to new technology than has generally been supposed, although they have seldom played a significant role in its deployment.

Economic growth is a process of creative destruction: technical progress creates new obs while at the same time destroying old ones. All growth is therefore disturbing, and a faster rate of growth means greater disturbance especially in advanced economies.

Large-scale unemployment can be avoided if governments can facilitate the transition of workers from old jobs to new jobs. This is perhaps the largest single challenge in the field of economic policy in the industrialised countries.

The book draws upon the results of a three year survey conducted by the authors, as well as upon many other contemporary studies of the effects of computerisation. The conclusions are manifold, but the theme is optimistic.

New computerised technology is accelerating the rate of change in Western societies, and hitherto the effects have been favourable. The extent to which its benefits will be realised, and costs minimised will depend on the response of firms, governments, trade unions and individuals to the specific challenges which adaptation to change requires.