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OECD Compendium of Productivity Indicators 2016

image of OECD Compendium of Productivity Indicators 2016

The publication presents a comprehensive overview of recent and longer term trends in productivity levels and growth in OECD and some G20 countries. The statistics presented include measures of labour productivity, capital productivity and multifactor productivity, as well as indicators of international competitiveness.

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Productivity by enterprise size

Firm heterogeneity and business dynamism matter for productivity. Productivity tends to increase with firm size, as large firms exploit increasing returns to scale. However, new small firms are often found to spur aggregate productivity growth as they enter with new technologies and stimulate productivity-enhancing changes by incumbents. The reallocation of resources across enterprises, driven by firm dynamics, is also expected to increase aggregate productivity via a process of ”creative destruction”, whereby innovative firms enter the market and expand while displacing lower productivity firms.

English

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