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The productivity paradox is based on Erik Brynjolfsson finding, based on research he conducted in the earlys, that the addition of information technology to business had not improved productivity at all.
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Productivity numbers are only as good as the data used in their calculations. Therefore, one possible explanation for the productivity paradox is that the data, or the analysis of the data, is actually hiding productivity gains.
Example: For manufacturing, it is fairly easy to measure outputs and inputs. Toyota, General Motors, Ford, and DaimlerChrysler, for example, produce motor vehicles, relatively well-defined products whose quality changes gradually over time. It is not difficult to identify, with reasonable accuracy, the inputs used to produce these vehicles.
