As regards labour supply, further reforms in income tax and benefit systems would help to increase incentives to work, in particular for those with weaker ties to the labour market, such as women and older workers. •  Supporting an innovative environment.
The reforms that I have mentioned need to be complemented by measures supporting innovation through higher investment in  8  Average annual hourly labour productivity was 1.3% during the period 2005-07, compared with 1.4% during the period 1995-2004. In the United States hourly labour productivity growth declined to 1.2% from 2.1% over the same two periods.