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Why is Europe performing so poorly in productivity growth?

Various factors have contributed to our poor productivity growth:

  • slow or no adoption of new processes and technologies to enhance efficiency
  • underinvestment in machinery, equipment, and technology
  • lack of innovation to enable the creation of new products and technologies
  • lagging workplace re-organization and worker training

The EU, in close partnership with industry and other levels of governments, is working on a strategic three-pronged approach to address the productivity growth challenges faced by Europe:

  • education and awareness of productivity
  • productivity enhancement tools
  • policies to promote and enhance productivity and innovation
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