Why Countries Need a Sectoral-Based Approach to Economic Growth

Why does sector competitiveness vary so widely even within developed economies? Does it just happen or is it a result of specific government policies? A new report from the McKinsey Global Institute, “How to Compete and Grow: A Sector Guide to Policy,” presents provocative findings suggesting that while foundational macroeconomic policies are certainly important, governments need to support the competitiveness of different sectors of their economy. The report finds that the global competitiveness of industry sectors in countries such as Japan, Korea, and Finland vary immensely, despite the fact they all exist under the same macroeconomic policy rubric, noting that sectoral policy factors largely explain these differences in outcomes. What can this teach us about U.S. innovation and competitiveness policy? Please join us on Monday, May 24th for a presentation of the report and ITIF President Robert Atkinson shares ITIF research reinforcing McKinsey’s conclusions that governments must take a sectoral-based approach to driving economic and employment growth.