The economic impact of automation technology

Abstract: "There is a growing consensus among academicians, business leaders and government officials that the American competitive problem rests centrally on the slowing rate of investment to integrate new automation technology into manufacturing operations. Although the source of major innovations in automation technology is from United States universities and research centers, American firms have been too slow in adopting these technologies. One of the major factors underlying this problem is the lack of an economic analysis technique specifically aimed at estimating the benefits of automation technology. This paper offers an economic analysis technique based upon the premise of increased probability of capturing the market segments through economies of scope. The paper first demonstrates the inadequacy of current economic analysis techniques to assess the benefits of automation technology, then proposes a new methodology which can be integrated to an expert system to assess the economic impact of various types of automation technology."