Country practices and new insights on their set-up and functioning
In the face of slowing productivity growth, a number of OECD countries have set up
pro-productivity institutions to produce objective evidence and data on productivity
trends and growth drivers and help inform pro-productivity policies and interventions.
The paper presents a new analytical framework to analyse the key characteristics of
these pro-productivity institutions. The framework draws on a comprehensive stocktaking
of pro-productivity institutions and applied policy advice work aimed at supporting
capabilities and mutual learning across these institutions. The paper finds that pro-productivity
institutions rely on a variety of set-ups and approaches to contribute to pro-productivity
policies. Despite this variety, the paper does point to some lessons that can help
pro-productivity institutions to continuously strengthen their capabilities. In particular,
the paper highlights the importance of guaranteeing the analytical independence of
pro-productivity institutions and access to micro-level data on firms and workers
to inform policies and interventions with objective data and evidence. The paper opens
a new line of research on the political economy of productivity policies that can
support countries ensure the effective implementation of policies aimed at enhancing
incomes and living standards.