This report addresses productivity and technology from the perspective of state vocational education agencies. Chapter 1 explores the meaning and measurement of productivity and the benefits of productivity improvement--profits, a weapon against inflation, success in international trade, increased standard of living, improved quality of life, and equality of economic opportunity. In chapter 2, four major technological innovations and their consequent skills implications are briefly discussed. The four technologies are microprocessors, robotics, computer-assisted design, computer-assisted manufacturing systems, and the office of the future. Chapter 3 examines major external forces influencing America's present productivity position, including the thirst for capital, the shrinking share in foreign trade, a segmented economy, the job creation process, labor shortages, and the management climate. Chapter 4 suggests specific strategies and mechanisms for use by state-level vocational education agency personnel in productivity improvement efforts. Suggestions are grouped according to major agency functions: program planning, program funding, research and development, professional development, technical assistance, administration, and business/industry linkages. (YLB)