Productivity Scenarios up to 2030 and comparative analysis with the Alpine regions
South Tyrol's economy has an average productivity and thus an average competitiveness. But competition is getting stronger. In addition, our population has developed to an extent that is not sufficient to cover the demand of labour. This is both a problem and an opportunity, because it allows sectors to be restructured without the risk of unemployment. Given our structural problem (the relative importance of less productive sectors), such a transformation process would be particularly desirable. If we want to ensure sustainable economic growth, a high per capita income and a balanced labour market with moderate immigration in South Tyrol, it is necessary to work with the following three instruments: 1. 2. 3.
increase productivity; increasing employment rates; lengthening working life.
What is needed is a targeted productivity policy that starts: − −
in the area of innovation (innovation capacity must be increased across all sectors); in terms of company size (larger companies have advantages in saving costs, compete better on international markets and have more opportunities for research and development);
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in the structure of the economy (for the most productive sectors, greater opportunities for expansion must be created).
Employment rates (mainly for women) should be increased. This can be achieved above all through a better compatibility of family and career (e.g. through appropriate care structures for children up to 3 years, organisational measures in companies, favourable opening hours of schools and offices, etc.). After all, an extension of the working life is important, because on the one hand it opens additional work potential and on the other hand it reduces the burden on the pension system. If South Tyrol maintains its current economic situation, the proposed measures would be a sufficient response to establish a competitive and balanced economy in the long term.