That’s the core message of a speech given by Mr. Haldane, Chief Economist, Bank of England, at London, 28 June 2018. The UK’s productivity problem, says the author, can be compared with a hub missing spokes.
The author starts stressing “three simple stylised facts” about UK’s productivity gaps:
But it’s not a lack of innovation which causes these gaps. It’s transfer barriers "to transferring technology, know-how, people and financing" (p. 17).
To close the productivity gaps "a useful intermediate objective would be to create in the UK a leading-edge diffusion infrastructure, to rival and complement its leading-edge innovation infrastructure" (23).