Long Description of Figure 1: How the Ministry Aims to Enhance Productivity Growth
Income Growth
Causes of Productivity Growth
- Technological advance
- Accumulation and use of human and physical capital
- Firm organisation and management/work practices
- Scale, scope and specialisation
- Resource allocation between firms
- Plant/firm turnover within industries
Underlying Factors Affecting Productivity
(Other Ministries' Strategic Priorities, MED Strategic Priorities)
Areas of Focus for MED
- An effective innovation system
- International commerce, inbound investment, and knowledge transfer
- An open, competitive economy
- Dynamic, effective and transparent markets
- Confident investors and consumers
- Availability of appropriate infrastructure
Other Important Factors
- Quantity/quality of available human capital
- A growth-friendly tax system
- Macro-economic stability
- Sustainable environmental management
What Government Can Do …
Create services, regulations, institutions and a policy environment that are …
- Supportive of trade, innovation and entrepreneurship
- Aligned across government
- Low cost, while maximising the net benefits to the community as a whole
→ Return to Figure 1
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