Pro-Productivity institutions at work: Country practices and new insights on their set-up and functioning

In the face of slowing productivity growth, a number of OECD countries have set up pro-productivity institutions to produce objective evidence and data on productivity trends and growth drivers and help inform pro-productivity policies and interventions. The paper presents a new analytical framework to analyse the key characteristics of these pro-productivity institutions. The framework draws on a comprehensive stocktaking of pro-productivity institutions and applied policy advice work aimed at supporting capabilities and mutual learning across these institutions. The paper finds that pro-productivity institutions rely on a variety of set-ups and approaches to contribute to pro-productivity policies. Despite this variety, the paper does point to some lessons that can help pro-productivity institutions to continuously strengthen their capabilities. In particular, the paper highlights the importance of guaranteeing the analytical independence of pro-productivity institutions and access to micro-level data on firms and workers to inform policies and interventions with objective data and evidence. The paper opens a new line of research on the political economy of productivity policies that can support countries ensure the effective implementation of policies aimed at enhancing incomes and living standards.