Thus, the introduction of improvements to the legal and judicial systems, in executing contracts or adopting laws that establish compulsory education are examples of areas in which significant gains in terms of growth potential can be achieved.
A recent Banco de Portugal study (Júlio, Alves e Tavares, 2013)5 suggests that improvements in institutional performance in Portugal, involving convergence to European best practice, could increase FDI into Portugal by around 60 per cent. 4. Demand-led national innovation system  The success of the Portuguese economy’s tradable goods and services sector depends greatly on its ability to absorb and take advantage of innovation.