First, there is adoption (or extensive margin) – the time it takes a new technology to first reach a country or company. Second, there is penetration (or intensive margin) – the extent to which this technology then reshapes processes and products within a company or country. 62  62  Comin and Mestieri (2013a). 17  All speeches are available online at www.bankofengland.co.uk/speeches  17  Take an example like computing technology or robotics. The adoption lag would measure the time it took for a country or company to have their first computer or robot. The penetration rate would measure how many computers or robots the country or company had and how intensively they were used. You would expect both to be important to the process of technological diffusion and to boosting productivity. And, empirically, 63  both are typically found to be important to these processes. So what does the evidence suggest about these twin diffusion processes? Looking at adoption lags of a range of different technologies across countries, the time-series evidence suggests these have fallen over th  time. Average adoption lags have shrunk from over a century in the 18 century, to perhaps 40-80 years in th  th  the 19 century and 20-50 years in the 20 century. 64  It seems possible these lags may have fallen further  st  entering the 21 century, with cross-border flows of information and ideas having risen to new heights. This is a good news story for productivity.
Trade unions helped workers by campaigning to protect their rights, improve their conditions and boost their bargaining power in the workplace. They also provided direct financial support to unemployed workers, through an early form of unemployment insurance, to smooth the income consequences for workers of job loss. The National Insurance Act (1911) and the Beveridge Report (1942) subsequently made this a responsibility of the state and put it on a comprehensive footing. th  This was part of a wider-ranging shift in the role played by the state in society from the 17 century onwards. th  State spending as a proportion of national income rose from around 1% in the 16 century to around 12% in th  th  th 39  the 18 , 14% in the 19 and 33% in the 20 . It financed social infrastructure of various kinds supporting  those facing greatest hardship. This ranged from social housing to healthcare to income support. Its effect was to cap the downside, recessionary risk to individuals, economies and societies. 40  Another form of institutional support came from the creation of state-owned and/or central banks. The Bank th  of England was set up at the end of the 17 century to manage the government’s debt and safeguard the nation’s currency and finances. Over the course of subsequent centuries, this role has expanded.