Policy implications
A wide range of policy options are available to deal with the specific productivity measurement pillars in our index. The specific solutions that could be relevant will vary from country to country, depending on their stage of development and their individual economic structures.
Human capital
Early childhood education and skill development are crucial for long-term productivity.
Natural capital
Policy levers at national and local levels—including taxes, subsidies, environmental standards, regulations, and the creation of protected areas—can support conservation and enhancement of natural capital.
Physical capital
Infrastructure investment, access to capital, tax incentives, trade liberalization, public-private partnerships, regulatory reforms, prudent monetary and fiscal policies, and support for savings and small and medium-sized enterprises can all lead to improved productivity.
Social capital
Increased effectiveness of government institutions through policies that enhance transparency, accountability, and the rule of law can contribute to a more trusting society, a key component of social capital.
Innovation
Implementing R&D tax credits and incentives can strengthen private R&D investment. Intellectual property regimes should balance innovation encouragement with efficient knowledge dissemination.
Institutions
Important policy levers include policies that enhance transparency, accountability, and the rule of law, and that enhance equity in society such as fair competition laws, a strong social welfare system, and equal access to high-quality government services.
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