1. OECD Global Forum on Productivity
Portuguese Minister of Economy
Lisbon, 8 July 2016
2. ►OECD productivity growth slowing down
► Widening dispersion of productivity gains between firms within
the same sector
► Problems amplified by the 2008 crisis
2
Productivity trends
3. ► Productivity growth rate decreasing since 1970 (similarly to
OECD and G7 countries)
► Despite the catching-up in some determinants of productivity:
education, R&D, training, ICT, business framework
► Since 2010, real wages have been growing slower than labour
productivity, affecting domestic demand
3
The Portuguese Case
4. 4
0,0
1,0
2,0
3,0
4,0
5,0
6,0
1960-70 1970-80 1980-90 90-2000 2000-10
Portugal
0,0
1,0
2,0
3,0
4,0
5,0
6,0
1960-70 1970-80 1980-90 90-2000 2000-10
UE15
Improving GDP Growth
Innovation, Education, Investment and Improving business environment
Growth and Competitiveness Strategy
5. ► Policy focus on reduction of labour costs and social rights
led to a drawback on
► Inclusive growth: social policies affected low income
households
► Science & Innovation: cuts in R&D budgets
► Investment: reduced investors’ confidence & access to finance
5
The Portuguese Case
6. Growth and Competitiveness Strategy
6
Strategic approach
Macro
Stability
►Reduce deficit
►Reduce debt
Economic
Growth
► Reset lost income
► Increase internal
demand
Competitiveness Strategic pillars
Innovation
Business
Simplification
Internationalization Training
Capitalization
7. ►Capitalization
►Comprehensive strategy for Innovation
► investment in science,
► Scale up start-ups
►Increase Technology Transfer
► Attract and retain investment
7
Growth and Competitiveness Strategy
9. Capitalisation Programme
9
Capitalisation
Restructuring
►New financial instruments for growth and innovation
►Promoting access to capital and debt markets
►Increasing neutrality in the taxation of debt and equity
►New financial instruments for restructuring viable firms
►Assessing public creditors’ role in recovery proceedings
►Improving liquidators’ performance in proceedings
►Early warning mechanisms on firms’ financial health
11. StartUP & Digital Industry Programmes
11
StartUP
Portugal
► Create entrepreneurship eco-system
► Attract investors and early stage financiers
► Tax incentives to start-ups
► Venture capital Funds
Industry 4.0
► Framework to identify major constraints and top
priorities within the industry digitalization process
► Standardization, technology adoption, training
► Focusing on agro-industries, automotive, fashion, retail
and tourism
13. Innovation, Tech & Exports Programmes
13
Tech Transfer
from Research
Centres to firms
Competitiveness
via Exports and
Innovation
► Tech transfer to business
► Improve links: universities, research centres & firms
► Increase R&D and Innovation in SMEs
► Innovation and technological transfer Fund
► Advance training for SMEs with high export potential
► Tools 4.0 for public admin dealing with exporters
► Retraining and employability programme for
graduates with foreign trade skills
14. 14
Growth and Competitiveness Strategy
Rate of growth of the exports (2005-2015)
Catching up on International Competitiveness
16. Business Environment Simplification
16
Simplex +
► Measures to improve the business environment
► Simplification of procedures in order to eliminate
bureaucratic requirements that are redundant or not
strictly necessary
► Improve business licensing for industrial purposes
► Reduce firms’ burden to deal with state bureaucracy
18. 18
►Indebtedness: consolidation and Capitalisation Programme
► Innovation: Industry 4.0, StartUP Portugal and Tech Transfer
► Qualifications: investment in Education (inclusive growth)
► International competitiveness: Export & Innovation for SME
► Business environment: Simplex Programme
Policies
Conclusions