Productivity and the UK’s Industrial Strategy: A Systems Approach

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Abstract

This article proposes a systems framework for analyzing the UK productivity puzzle, arguing that piecemeal policy initiatives have failed because productivity performance emerges from the complex interaction of multiple factors — technology adoption, management practices, skills, investment, market competition, and regional agglomeration — rather than any single bottleneck. Drawing on evidence from the UK Productivity Insights Network and international comparisons, the authors argue for a comprehensive industrial strategy that addresses complementarities across these factors simultaneously, with place-based components to address regional productivity gaps.

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