Productivity 250

250 years of Total Factor Productivity growth — from Adam Smith and the cotton gin to AI and intangible assets. Six lessons tracing how General Purpose Technologies drive productivity, how each era created new asset classes, and why the next productivity revolution depends on measuring what we cannot yet see on a balance sheet.

By David Stroll & Ivan Gowan · 6 lessons · ~45 min total

The 250-Year Arc of Productivity Growth

Every era in this series follows the same pattern: a new set of General Purpose Technologies emerges, organisations redesign around them, and Total Factor Productivity accelerates. But each era also created a new class of assets that could be measured, owned, and monetised — expanding what appeared on the balance sheet. The pattern culminates today, where 92% of enterprise value is intangible but mostly invisible in financial statements.

Era Period Key GPTs TFP Rate New Asset Class
1. The Pioneers 1776–1825 Cotton, steam, coal, canals 0.4% Patents & inventions
2. Age of Steam 1826–1875 Railways, telegraphy, joint stock co. 0.8% Equity & capital markets
3. Oil & Electricity 1876–1925 Oil, ICE, electricity, Ford, radio 1.3% Brands, IP & copyrights
4. Golden Age 1926–1975 Aeroplanes, mass production, TV 5.6% peak Goodwill & going-concern value
5. C3 Era 1976–2025 Microprocessor, internet, AI 1.0% Software & data (partially)
6. Next 50 Years 2025+ AI, climate tech, institutions ? Full intangible assets
1776
1826
1876
1926
1976
2025+

The Lessons

Work through the series in order, or jump to any era that interests you. Each lesson takes 6–8 minutes to read and includes a 5-question quiz.

1 1776–1825 · TFP: 0.4%

The Pioneers (1776–1825)

How Adam Smith, Arkwright, and the first General Purpose Technologies launched 250 years of productivity growth.

GPTs: Cotton, steam, coal, canals

Start Lesson 1 →
2 1826–1875 · TFP: 0.8%

Age of Steam (1826–1875)

Railways, telegraphy, and joint stock companies doubled TFP growth and created modern capital markets.

GPTs: Railways, telegraphy, joint stock companies

Start Lesson 2 →
3 1876–1925 · TFP: 1.3%

Oil & Electricity (1876–1925)

Oil, electricity, and Ford's assembly line drove TFP growth to 1.3% and laid foundations for the golden age.

GPTs: Oil, ICE, electricity, Ford, telephony, radio

Start Lesson 3 →
4 1926–1975 · TFP: 5.6% peak

Golden Age (1926–1975)

The peak decades of TFP growth — mass consumption, Solow's growth equation, and post-war prosperity.

GPTs: Aeroplanes, mass production, national brands

Start Lesson 4 →
5 1976–2025 · TFP: 1.0%

C3 Era (1976–2025)

A billion-fold improvement in computing, but TFP growth slowed. The IT productivity paradox and the rise of intangible assets.

GPTs: Microprocessor, internet, smartphones, LLMs

Start Lesson 5 →
6 2025+ · TFP: ?

Five Challenges (Next 50 Years)

Increasing global TFP, distributing gains fairly, keeping humans in charge, solving climate, and defending democracy.

GPTs: AI, climate tech, institutional reform

Start Lesson 6 →

The Balance Sheet Thread: 250 Years of Expanding What Can Be Owned

Every major productivity acceleration was preceded or accompanied by the formalisation of a new asset class. When we learned to measure and monetise something new, capital flowed toward it, and productivity accelerated. This series traces that pattern through six eras — culminating in the question that defines our own: how do you measure the 92% of enterprise value that sits in intangible assets?

1624Statute of Monopolies
Patents become tradeable assets
1790US Patent Act
Intellectual property formalised
1844Companies Act
Joint stock equity as asset class
1883Paris Convention
International brand/IP protection
1985SFAS 86
Software becomes capitalisable
1998IAS 38
Intangible asset standard adopted
2025The Gap
92% of value is intangible, mostly unmeasured

The Balance Sheet Inversion: 1975 to 2025

Ocean Tomo data shows how intangible assets grew from 17% to 92% of S&P 500 market value. Drag the slider to watch the inversion unfold.

1975
Tangible 83%
17%
197519851995200520152025

Your Productivity IQ Progress

Complete each lesson's quiz to build your score. Earn your badge at the end.

Lesson 1
1776–1825
Not started
Lesson 2
1826–1875
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Lesson 3
1876–1925
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Lesson 4
1926–1975
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Lesson 5
1976–2025
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Lesson 6
2025+
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Total: 0/30

Do You Know Your Productivity History?

Each lesson includes a 5-question quiz. Complete all six and earn your Productivity IQ badge — from Productivity Apprentice to Productivity Master.

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