Applauding the ‘Tech Gurus’ Boosting Companies’ Productivity

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In the 1820s, employers from France, Germany, and the US were actively recruiting skilled workers from Britain. These employers would wait at factory gates to identify the most talented individuals. In parallel, British machine maker Job Dixon faced the challenge of bringing experts from England to Alsace to set up the spinning machinery he had manufactured. This showcased the superior skills and productivity of British workers.

This historical context sheds light on an essential truth about technology and its impact on economies, which remains relevant in the current era of technological advancement.

There have been various theories put forth by historians on why the industrial revolution originated in Britain. One crucial factor was the quality and skill level of the country’s workforce. British workers were healthier, better nourished, and taller than their counterparts on the continent. Additionally, they benefited from a flexible apprenticeship system that facilitated the quick acquisition of new skills. This not only allowed them to invent new technologies but also enabled efficient installation, maintenance, customization, and optimization of these technologies in the workplace. As an economic history paper states, “these characteristics did not require much science or even originality, but they needed people who were good with their hands and had been taught how to use them.”

In the 21st century, the importance of people with technical proficiency remains paramount. Recent research from France demonstrates that individuals who specialize in installing, maintaining, managing, and supporting technology systems significantly contribute to company productivity. This applies not only to the manufacturing and research sectors but across various industries, highlighting the correlation between employing technical experts and offering training in technical skills.

Considering the forthcoming wave of technological change, the question arises: how can Britain, the birthplace of the industrial revolution, leverage this revolution? While the country boasts a thriving hub of universities, companies, and startups in the southeast, it cannot solely rely on this region. To enhance productivity with the aid of artificial intelligence and robotics, the UK needs technically proficient individuals across all regions and sectors who can effectively implement these innovations. This extends to areas such as automotive supply in the Midlands and marketing companies in the north.

While there has been an increase in the number of students pursuing science, engineering, and technology subjects, “business and management” remains the most popular undergraduate degree. However, this popularity has not translated into better-managed or more productive businesses, at least not yet.

Moreover, the apprenticeship system, which played a central role in supplying the skills required during the industrial revolution, is currently in decline due to mismanaged reforms. The number of apprenticeships in STEM areas has decreased by approximately 20% between 2017/18 and 2022/23, with a particularly sharp decline observed in the most deprived areas.

Even the fundamental advantage that contributed to the UK’s “human capital” during the industrial revolution, namely taller and better-nourished workers, cannot be taken for granted anymore. Height serves as an indicator of childhood living conditions, including nutrition, sleep, stress, and illness. Presently, UK five-year-olds have an average height shorter than their counterparts in France, Germany, and the US.

To harness the potential of the next machine age and boost productivity, the British government must not only focus on regulation and innovation but also invest in the health, confidence, and skills of individuals across the entire economy.

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