In particular, I want to focus today on the importance of research and development and innovation which are key determinants of productivity growth and competitiveness. Productivity performance in europe To put this in context, allow me first to say a few words about economic performance in Europe, particularly relative to the United States.
Per-capita output in the EU-15 is currently about 70 per cent of the US level, roughly the same as it was 30 years ago. It is estimated that about one third of the difference in per-capita GDP between the US and EU can be explained by lower employment rates, one third by shorter working hours, and one third is attributable to lower labour productivity.