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 “Productivity isn’t everything, but in the long run it is almost everything.”

— Paul Krugman

“Total factor productivity” (TFP) is how economists measure the contribution of technological innovation to economic growth — the sustained ability of an economy to produce more output with the same amount of inputs.

As such, it’s arguably economists’ most important measurement, because the continual process of producing more with less is how life gets better.

“A country’s ability to improve its standard of living over time depends almost entirely on its ability to…

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