It also means allocating resources more efficiently and being more innovative. In my remarks today, I'm going to focus on the two latter elements—efficient allocation and innovation. I'll start with efficient allocation. At any point in time, we allocate resources among competing uses, always trying to use the resources we have as efficiently as possible.
The goal is to move to the point where, given current production practices and knowledge, we are getting the absolute most out of the labour and capital resources at our disposal. The second element of productivity is innovation. This means generating new knowledge, improving technology, and enhancing both the processes and the organization of production.