Productivity

A country’s productivity is one of the principal determinants of its economic strength and long-term prosperity. It shapes income levels, living standards, fiscal capacity, and the sustainability of social protection systems. Higher productivity allows firms to compete internationally, workers to earn higher wages, and governments to finance public goods without imposing excessive tax burdens. 

Productivity is, however, a multifaceted phenomenon. It depends on firm dynamics, innovation, human capital, management quality, regulatory frameworks, infrastructure, and the allocation of resources across sectors. It is influenced by financial markets, competition policy, education systems, labor market institutions, and the quality of public administration. Meaningful progress, therefore, requires rigorous empirical analysis, interdisciplinary collaboration, and close engagement with policymakers and practitioners. Incremental adjustments are often insufficient; structural reforms must be grounded in careful evidence and clear implementation pathways.

The Haddad Productivity Lab, an integral part of the Nova SBE Public Policy Institute, positions itself as a center of excellence dedicated to the production, dissemination, and implementation of actionable knowledge. Its mission is not only to advance academic understanding of productivity, but to translate research into concrete public policy proposals that can be implemented effectively and within realistic time horizons. By mobilizing faculty, researchers, and high-potential young scholars, and by engaging with government, business, and civil society, the Lab seeks to foster reforms that enhance firm performance, stimulate innovation, and strengthen Portugal’s capacity for sustained, inclusive growth — while also contributing to the international debate on productivity policy.