Third and finally, to fully exploit productivity potential, the labour and product market reforms I have mentioned need to be accompanied by policies which unlock business potential, by action to support innovation through higher investment in research and development, and by measures aimed at improving human capital.
14  P. Conway, D. de Rosa, G. Nicoletti and F. Steiner, 2006, “Product market regulation and productivity convergence”, OECD Economic Studies No 43.