French Manufacturing Sector Surpasses US in Productivity Growth Through Innovation.
The productivity growth of manufacturing sectors in France has matched that of the United States and surpassed the United Kingdom from 1980 to 2002. Sectors further from the technological frontier experience faster productivity growth. Research and development spending and trade with advanced economies boost productivity, but do not speed up convergence. On the other hand, productivity growth is hindered by certain labor market factors like the replacement ratio and the minimum wage compared to the median wage.