Past Event

Solving the productivity puzzle

This event featured the presentation of new research by the McKinsey Global Institute.

Date: May 23, 2018, 12:00 pm Topic: Innovation & Competition Policy

audio & video recordings


Productivity growth matters for material living standards but has dropped to historic lows in advanced economies. The McKinsey Global Institute examined why productivity growth has been so weak in Europe and the US and looked at the potential for its growth to accelerate, especially at a time when automation and digital technologies are playing a growing role in the economy.

The research, published in February 2018, reveals that half the recent slowdown in productivity growth is attributable to the waning of a 1990s IT-driven productivity boom, while the other half is attributable to financial crisis aftereffects, particularly weak demand and uncertainty. For the future, the report finds that digitization contains the promise of significant productivity boosting opportunities, but the benefits have not yet materialized at scale. This is due to adoption barriers and lag effects as well as transition costs. The research identifies productivity-boosting opportunities that could be at least 2 percent per year over the next ten years, with 60 percent coming from digital opportunities. How strong the recovery is, however, will depend on the ability of companies and policy makers to unlock the benefits of digitization and promote sustained demand growth.

presentation

Presentation by Jan Mischke

Schedule

May 23, 2018

12:00-12:30

Check in and lunch

12:30-12:50

Presentation

Jan Mischke, MGI Partner, Zurich

12:50-13:30

Panel Discussion

Chair: Maria Demertzis, Deputy Director

Janet Henry, Global Chief Economist, ‎HSBC

Jan Mischke, MGI Partner, Zurich

Dirk Pilat, Deputy Director, Directorate for Science, Technology and Innovation, ‎OECD

Reinhilde Veugelers, Senior Fellow

13:30-14:00

Q&A

14:00

End

Speakers

Maria Demertzis

Deputy Director

Janet Henry

Global Chief Economist, ‎HSBC

Jan Mischke

MGI Partner, Zurich

Dirk Pilat

Deputy Director, Directorate for Science, Technology and Innovation, ‎OECD

Reinhilde Veugelers

Senior Fellow

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevon

matilda.sevon@bruegel.org

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