Addressing productivity paradox with big data: implications to policy making

The current problem of the European economy is a paradox: EU Member States have innovating economies but they fail to achieve increases in productivity, wages and domestic growth. The EU-funded BigProd project aims to broaden present econometrics methodologies with theoretically sound 'Big Data' operationalised measures, validated through pilots and communicated to relevant stakeholders – a method achieved by uncovering the origins of the slowdown of productivity in many Western economies. The BigProd model will be operationalised through a random stratified sample of up to 200 000 European companies. This proposed approach is highly novel and will help create new policies to solve issues of low productivity.