Why Europe trails the U.S. but still has hopes for growth. I t started as a whisper and became loud cheering, emanating from the other side of the Atlantic and heralding the coming of the New Economy. As the economy chugs into its ninth year of expansion, due to set a record in February, even the stoic Alan Greenspan might show a measure of exuberance.
Most economists expect at least a small technology-led boost within the next five years.
But how big it is, where it hits, and how long it lasts is more than a matter of time and money. The choices companies and governments make now will determine Europe's future for decades to come. So it's not surprising that they're not yet seeing the benefits. In general, European companies invest less in technology. In the next three years, productivity growth should increase at a slow rate and then pick up, as European companies learn how to better integrate technology into work processes and as the Internet becomes more popular.