Whenever I discuss our productivity problem, people get terrifically animated until the point at which I wonder out loud what the government can do to improve the endogenous growth potential of the economy. Endogenous growth concerns the factors by which economic development is primarily generated from within a system owing to internal processes, rather than by external factors.
This theory emphasises the role of human capital, innovation and so-called firm-level factors, such as regulations. Then there are also the constants – the importance of sound institutions and improving
