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Fortune

Eric Kutcher, Olivia White

Productivity growth is vital for the economy. Few companies actually create it

United States Germany

(Credit: PATRICK T. FALLON/AFP via Getty Images)

Chameleons change their color to blend in. The Great Wall can be seen from space. Productivity growth comes from thousands of firms adopting the latest technologies and processes. All sound plausible—and all are wrong.

The reality is that productivity growth comes from a small number of companies moving a mile—by finding new ways to create business value—rather than by many firms moving a few inches through imitation.

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