02101cas a2200325 a 4500 AALejournalIMF022171 230101c9999 xx r poo 0 0eng d 5.00 USD 9781616356248 1018-5941 BD-DhAAL BD-DhAAL Garcia-Macia, Daniel. Tracing Productivity Growth Channels in the UK / Daniel Garcia-Macia, Julia Korosteleva. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students What drove the UK productivity slowdown post-GFC, and how is the post-Covid recovery expected to differ? This paper traces the sources of TFP growth in the UK over the last two decades through the lens of a structural model of innovation, using registry data on the universe of firms. The dominant innovation source in the pre-GFC decade were improvements by incumbent firms on their own products, whereas creation of new varieties by entrants took a leading role post-GFC. In the Covid recovery, survey data suggests that creative destruction (i.e., innovation replacing other firms' products) is expected to gain importance. This emphasizes the need for growth policies that facilitate labor and capital reallocation across firms, in addition to R and D support. Mode of access: Internet Aggregate Human Capital imf Aggregate Labor Productivity imf Employment imf Intergenerational Income Distribution imf Unemployment imf Wages imf Korosteleva, Julia. IMF Working Papers; Working Paper ; No. 2021/273 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/273/001.2021.issue-273-en.xml IMF e-Library