In some other countries, in contrast, the prominence of government-owned firms with a degree of monopoly power, together with a regulatory environment that protects incumbent firms and makes the entry of new firms difficult, reduces the competitive pressure for innovation and the application of new ideas.
For example, some economists have argued that restrictions on land use and on shopping hours in Europe have impeded the development of "big box"  2  BIS Review 80/2006  retail outlets, reducing competition and denying European firms the economies of scale that have been important for productivity growth in the retail sector in the United States (Gordon, 2004).