9 The structural characteristics of the US economy – a more flexible labour market, a higher degree of competition in product markets and lower barriers to entry for new firms – were apparently more conducive to exploiting the opportunities provided by new technologies.
By contrast, the productivity growth performance in Europe was characterised by a lack of technology diffusion across sectors, particularly in the services sector. The need for further structural reforms in Europe Overall, this brief assessment of the underlying causes of Europe’s disappointing longer-term growth performance provides a mixed picture of the European economy.