Keywords: Development Policies; Industrial Policies; Innovation; Growth; Productivity.
played by the state in promoting economic growth, with important contributions
from economists, sociologists and political scientists. This attention further
increased after the economic and financial crisis of 2007/08 with a rising
strand of research that is focusing on the institutional foundations of different
growth models in advanced economies. This paper is related to this wide
strand of research and analyses how industrial policies can favor the emerging
of institutional conditions that are conducive to economic growth. In particular,
the paper analyzes the neglected relationship between public policies and
labor productivity in OECD countries. The focus is on four policy arenas that
have a direct impact on labor productivity: labor market, human capital, innovation
and on the efficiency of public administration. The analysis underlines
a strong association between labour productivity and public policies addressed
to promote training and activation, tha quality of educational institutions and
inter-institutional networks in innovation. Other kind of policies, such as those
addressed to flexibilise the labour market or to reduce labour costs or to increase
the average number of years of schooling play a minor role.