We know that factors such as size, the lack of domestic competition and access to finance can retard the pace at which productivity enhancing measures are introduced. However, while  BIS Review 20/2010  1  these factors may seem to be a disincentive to change, we must not resile from our commitment to pursue productivity enhancements.
Indeed, if such a process continued for some time, we could fall into deflation, much as Japan did for a time in the 1990s and earlier this decade.