This article examines the theoretical and statistical connections between the productivity upsurge in U.S. manufacturing in the 1980s and manufacturing investment in computers and other forms of high-tech equipment.

A new index of the U.S. high-tech sector, drawing upon a range of technology-specific data, has the potential to offer a more timely assessment of economic activity than has been possible to date. The index suggests that while the tech sector has rebounded from its poor performance in the...