A new report (link to story at bottom) from the London School of Economics, found UK workers are less productive than other Europeans on the basis they contributed less to GDP per hour worked. There is another more human-centred explanation regarding a culture of innovation.

Another take on Productivity
People in society have to be motivated to work hard, unless a society rewards individual effort or there is a moralistic/values edge to society (eg the US / German approach) regarding work people will work less.

But let’s look at this personally. Let’s make up a person. Joe Smithing-botham the Industrial Supervisor/Manager.

Joe works long hours. Management ignore his ideas, but he has hope of being management one day so he can ignore other peoples ideas.

Joe has to get a personal return for my work.

A sense of reward, and hopefully some money. But it seems to Joe his wage is just to pay his huge mortgage (relative to wages), and put his kids through school, buy stuff for the house, pay bills. Joe gets very little benefit directly in the short-term personally from his wage. Still there is that promotion…

Human beings like Joe are remarkably short-term creatures, and like rewards to be tangible and soon. If Joe is under 30 then double that tendency.

But to resolve this we have to look at where Joe might liveand the innovation culture of that city.

Let’s compare where Joe might live
Joe lives in the USA. The USA has incentives, a work ethic, a value system where shirkers are pubnished, and a team-building program. Joe works at GE, and there are established paths to that management position, as well as lots of training.

OR

Joe lives in the UK. The UK has limited incentives, a value system where shirkers are praised (see TV show The Office) and a culture where team-building is seen as something that happens at the Pub. In the UK training (as this LSE report shows) is under-funded.

Further if Joe is particularly unlucky in his choice of employer, even the big companies, Joe might not be taken seriously unless he is ‘under-someone’s-wing’. To make matters worse Joe did not go to the ‘right school’. If we wanted to make it very improbable we might say Joe was born as a child in a former colony.

The Culture of Innovation for the Average Joe

If Joe is very determined and made of the ‘right-stuff’ he’ll go far in both places. That’s not the point. The tough conditions in the UK might breed a better business person.

In London individuals of exceptional talent and drive manage to get ahead, and it’s a big enough place that the bright sparks can stick together. But they succeed regardless of the system, not because of it.

But one might suggest that the USA does more to make the average person a successful business person or manager. And most workforces are full of average people, not super-determined super-stars.

Further research
Our City rankings in the Global innovation Review 2007 ranked London lower than Edinburgh and Boston, New York, Melbourne, Paris, Berlin and others because of a confluence of factors. But even without our unique ranking system, London would score poorly on a key major factor in innovation and productivity.

That key factor is a culture of innovation. LSE statistics just support the truth, they don’t create it. Culture creates innovation.

Macro is really just the Micro of innovation

And the macro-picture reality of economics is a series of micro-decisions made by Joes. And Joe was beat before he started in the UK. So for business, I hope Joe lives in America.

Christopher-not-Joe. OK?
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