Productivity growth has been very sluggish and has tended to become more dispersed across firms, reflecting insufficient diffusion of innovations. Completing the Single Market in network sectors and services is essential. Enhanced public support for R&D and more effective adult learning would foster knowledge diffusion and make growth more inclusive.
- Enhance support for innovation.
- Strengthen the links between research institutions and firms, and promote lifelong learning and high-quality education and training.
- Increase competition in network industries.
- Increase competition in the services sector, including through the full implementation of the Services Directive.
- To reduce implicit barriers, reform and harmonize product market regulations.
Source: OECD May 2017 Economic Outlook database
van Ark, B. (2015), “From Mind the Gap to Closing the Gap. Avenues to Reverse Stagnation in Europe through Investment and Productivity Growth”, European Commission, Directorate-General for Economic and Financial Affairs, Discussion Paper 006.
Fournier, J. (2014), “Reinvigorating the EU Single Market”, OECD Economics Department Working Papers, No. 1159, OECD Publishing.
Productivity - enhancing institutions