The Bootstrap Recovery

Why making ourselves more productive is central to winning the global race for competitiveness and growth

Published: Janaury 2012
Type: Report
Area: Growth through technology

Introduction
The global economy in the rest of this decade will be much less benign than it was in the long period of demand-led expansion that ended in 2007/8. As over indebted developed countries and emerging new economies struggle to grow in a demand constrained world the race for global competitiveness will become much more intense.

Competitiveness is determined by a range of factors, but perhaps the most fundamental in the 21st century global digital economy is the ability to make efficient and effective use of technology to drive innovation and accelerate productivity growth - what we term in this report tech-excellence.

This is not to argue that technology is a panacea for growth, but there is overwhelming evidence that the smart use of tech, combined with complementary factors, such as good managerial practices and strong employee skills can lead to increased innovation, productivity growth and improved competitiveness.

By focusing on the challenge of raising productivity, government can help to create a stronger demand pull for the innovative and effective use of technology right across the economy. The challenge is to turn what risks being a lost decade into a decade of renewal.

The aim of this report is to kick start a debate about how the UK can achieve a bootstrap recovery – a self sustaining process of renewal and structural change to raise its productivity and competitiveness. With little prospect of an external demand stimulus, we believe this will be the only feasible route back to long term sustainable growth.

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The Bootstrap Recovery (566KB)

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