1. Workshop on Productivity Bern 16-18 October 2006 Dominique Guellec Economic Analysis and Statistics Division Directorate for Science, Technology and Industry Productivity Growth and Innovation in Switzerland: an International perspective

2. 2 Productivity and Innovation in Switzerland This presentation will compare productivity patterns of Switzerland with other countries; it will analyse the determinants of productivity related to innovation, and in turn the economic and institutional conditions which influence innovation. Structure of the presentation: 1)Productivity 2)Innovation 3)Framework conditions

3. 3 Productivity and Innovation in Switzerland Major source of information for this presentation: The OECD Compendium of Productivity Indicators - 2006

4. 4 Productivity and Innovation in Switzerland

5. 5 Graph 1.2. Income and productivity levels, 2005

6. 6 1995-2000 2000-2005

7. 7 Productivity and Innovation in Switzerland

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10. 10 Productivity and Innovation in Switzerland

11. 11 Productivity and Innovation in Switzerland

12. 12 Productivity and Innovation in Switzerland

13. 13 Productivity and Innovation in Switzerland

14. 14 Productivity and Innovation in Switzerland

15. 15 Productivity and Innovation in Switzerland

16. 16 Productivity and Innovation in Switzerland

17. 17 Productivity and Innovation in Switzerland

18. 18 Productivity and Innovation in Switzerland

19. 19 Productivity and Innovation in Switzerland

20. 20 Productivity and Innovation in Switzerland

21. 21 Productivity and Innovation in Switzerland

22. 22 Productivity and Innovation in Switzerland

23. 23 Productivity and Innovation in Switzerland Conclusions (1) Switzerland features very well in terms of GDP per capita. It is due to its high labour utilisation, while the productivity of labour is in the OECD average. Productivity growth has been slow in Switzerland over the past decade.

24. 24 Productivity and Innovation in Switzerland Conclusions (2) Switzerland is strong in knowledge intensive industries (pharma, finance) and its has all factors needed to be innovative: High R&D expenditure, skilled labour force, strong university system, high internationalisation of R&D. BUT: Switzerland is relatively weak in emerging technology fields, where entrepreneurship is the key factor.

25. 25 Productivity and Innovation in Switzerland Policy recommendations => Facilitate entrepreneurship in emerging technology fields Reduce barriers to domestic competition Improve efficiency of public support for R&D Raise efficiency of bankruptcy procedures