Final answer:
Saying IT investment is the single most important driver of worker productivity is false; technological change, a mix of invention and innovation, plays a critical role. The development of technologies like the transistor demonstrates how such changes can revolutionize productivity and efficiency.
Step-by-step explanation:
The assertion that investment in IT is by far the single most important driver of worker productivity is false. While investment in IT is crucial and can significantly enhance worker productivity, it is not the single standout factor on its own. Technological change, which includes both the invention of new technologies and innovation in applying them, is a key element in productivity growth. An example of this impact is the development of the transistor in 1947, which led to a considerable reduction in the size and power consumption of electronic devices. This in turn has enabled workers to be more mobile and efficient, facilitating better communication and task management.
Technological change is a combination of invention—a pursuit of new knowledge—and innovation, which is putting those advances into practical use, leading to improved productivity across various industries. Technological advances are typically the most significant contributors to U.S. economic growth, frequently accounting for more than human and physical capital contributions combined.