The EU lags the US in productivity growth. Actions to increase innovation, investments in intangible assets, and promote market dynamism are needed to improve the EU's productivity. The EU should increase expenditure on R&D and create better incentives for private-sector R&D spending. The EU...

A big part of the EU-US productivity gap is due to the EU investing less in ICT-related tangible and intangible capital. These lower investments are partly explained by EU digital regulations limiting companies' access to modern endowments like data. Limits to these endowments push EU firms...