Posts in Investment
Productivity Dynamics: Decision Criteria for New Technology Investment

This article considers the appropriate decision framework for corporate capital investment projects when the technologies are new to the company or new to the world. I use an overview of the known drivers of capital investment and an exploration of the significant differences in motivation and framework between ordinary capital investment and new technology investment to form a decision-making flow chart for both capital investment and new technology investment.

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Automation Investment in U.S. Manufacturing: An Empirical Picture

Amid all of the recent public dialogue about new manufacturing technologies and manufacturing automation investment in particular, there are little or no data offering a coherent picture of the automation investment dynamic. In this second of three MAPI Foundation papers on manufacturing productivity performance, I seek to remedy the data deficit by presenting the results of a national survey of U.S. manufacturers on their automation activity. I offer revealing stratifications of the results by company size and industry.

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How Important Is an EU Capital Markets Union to MAPI Companies?

The European Commission recently proposed a capital markets union as a means of raising the share of direct finance in the economy. Kris Bledowski suggests possible components of such a union and assesses their value to MAPI members. His analysis shows that few components are likely possible by 2019, the putative deadline. Even if all the goals are met, their impact on MAPI member companies’ operations in Europe will probably be modest.

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Transatlantic Approaches to Supporting Manufacturing

The U.S. and EU have pursued industrial policies with different approaches. The United States emphasizes general scientific research. In the EU, failure to innovate is spurring direct support to companies in addition to occasional bailouts. It is not clear that Europe has received its money’s worth, judging by its continued lag behind the U.S. in productivity and innovation. On both continents, the future of manufacturing lies in making an economy an attractive place to invest.

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InvestmentKaryn Hill