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An International perspective on the productivity paradox – by Alain ...

An International perspective on the productivity paradox – by Alain ...

Summing-up• Distance

Summing-up• Distance to market, the gap in innovation and good integration oflow-skilled workers can potentially explain between half and twothirdsof the 30 per cent productivity gap• Boosting innovation – especially in services – may require betterreallocation of resources both within and across firms– Within firms: adapting business practices to new technology:stronger pressures from competition and financial markets– Across firms: improving access to early stage venture capital andeasing regulation in professional services• Distance cannot be changed but its impact can be minimised– Ensure that regulation is as conducive to low transport costs (relativelyhigh regulatory barriers to competition in air transport and telecoms)– Strengthen trade links with markets close(r) to home36

SYMPOSIUM:UNPICKINGNEW ZEALAND’SPRODUCTIVITY PARADOX2 July 2013, Oceania, Te Papa Tongarewa

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