We’ve established in the past that, when looking at productivity, it is important to answer questions about “why” productivity is doing what it is doing and why we care.
Having accepted that there are industry specific differences in productivity between New Zealand and Australia (a relatively comparable nation), the Productivity Commission has been focused on competition in the services sector – which includes many of the underperforming industries. Although they’d identified occupational licencing as an issue previously, they are putting that to the side to now (although that and patents are still areas of interest), and in their new report are focusing on two things:
- stimulating a more competitive environment; and
- the successful adoption of information and communications technology (ICT) by service firms.