Robot adoption will likely be a critical determinant of productivity growth and has the potential to reshape global supply chains.
Improvements in automation technology such as robotics are poised to bring more automated manufacturing production work to developed countries, rather than offshore it to lower-wage countries.
Most forecasts exaggerate the impact automation will have on employment. The evidence suggests structural unemployment will not increase due to automation, and labor will receive a significant share of the benefits.
Policymakers should support—rather than resist—the development of the next production system.