SCHUMPETER LECTURE WITH BART VAN ARK

© Christian Lendl

Bart van Ark is Professor at the Alliance Manchester Business School based at the University of Manchester and Director of the Productivity Institute (https://www.productivity.ac.uk/). His research focuses on international comparative productivity measurement and analysis, innovation and technology, and digital transformation.

At the invitation of the Schumpeter Society, van Ark discussed the role of productivity in the age of rapid technological change, and why, despite of that, advanced economies have the lowest productivity growth rates since the Second World War. He discussed the role artificial intelligence will play in this context. Technological change must be embedded in a favourable economic, political and social environment for innovation and productivity growth to take hold.

Although the potential of artificial intelligence is certainly there, its impact depends on the speed of its development and adaptability. He emphasised three key aspects:

• AI applications require various intangible factors to be brought together - primarily skills, software and data.

• Energy consumption will be a constraint for AI due to the enormous demand for computing power. Quantum computers are a way out but they are still in their infancy.

• The principles of ‘responsible AI’ and its regulation are not yet sufficiently developed, but this will have an important impact on relations between business, government and the wider population.

At the end of the lecture, he discussed a range of pro-productivity policies which aim inclusive and sustainable growth. A challenge that will accompany us in the coming years.