Final answer:
Progressive management teams use IT and technology to implement innovation, which involves applying new knowledge to enhance products, processes, and services, contributing to increased productivity and encouraging further technological advancements.
Step-by-step explanation:
Progressive management teams use IT, as well as other new technology and capital investment, to implement innovation in products, processes, and services. Innovation refers to the process of applying advances in knowledge to create new or improved products, processes, or services. This effort can be seen in various aspects, including investment in human capital, advancements in technology, enhancing the infrastructure, and improving labor productivity. It's essential to create a stable and market-oriented economic climate that fosters the growth of such innovations. Governments can encourage innovation through proper regulation and investment, which is vital for employment and economic opportunities, especially as firms like Amazon and Apple demonstrate the impact of mega corporations in the modern ICT-driven world.
Countries with strong institutions for training workers and building better machinery can maximize the benefits from new technological advances. This capacity promotes faster adoption of new production methods and encourages additional technological advancement. The positive feedback loop created by these factors contributes to maintaining high productivity growth from new technologies at low marginal costs.