Improving Productivity
How does a business or industry improve its productivity? Numerous specific sugges-
tions made by experts generally fall into two broad categories: improving operations
and increasing employee involvement.
Improving Operations
One way that firms can improve operations is by spending
more on research and development (R&D). R&D spending helps identify new products,
new uses for existing products, and new methods for making products. Each of these
contributes to productivity. For example, Bausch & Lomb almost missed the boat on
extended-wear contact lenses because the company had neglected R&D. When it became
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