Are Pro-productivity Policies Fit for Purpose?

For decades, many countries in the G-20 and beyond, have a applied a plethora of policies with the aim to support productivity growth. Whilst there are distinctly different productivity growth dynamics between groups of G-20 economies, labour productivity growth has broadly slowed since the 2010s underpinned by lower (or even negative) total factor productivity growth and weakening investment. Using a typology of pro-productivity policies, we argue that a revival of productivity growth in the G20 requires a greater focus on policies balancing technological progress with knowledge diffusion; more investment in intangibles and public assets; and improvements in the quality of human capital. We also argue for capabilities that allow for dynamic learning about pro-productivity policies across countries and over time.