Contributor(s): Dr Michela Giorcelli | British business productivity growth has been lagging for the past couple of decades, and key to the Labour government’s goal of improving economic growth is raising productivity. This lecture explores a period of very high productivity growth in history, WWII, to understand the sources of productivity growth generally. Traditionally, World War II has been considered the source of “an extraordinary surge of growth” in the US, thanks to the advancements in science and technology it pushed. Michela Giorcelli argues that wartime was also a major inflection point in the history of American business.

The large-scale diffusion of innovative management practices to US firms involved in war production acted as a technology that put them on a higher growth path for decades, but also helped creating the “American Way” of business.