B4. Enterprise and Competition
The more acute competitive pressures the higher productivity growth. We present data on concentration of market share and the incidence of supernormal profits, as a monitor of competitive pressures – the greater the competition the lower these indicators will be.
Enterprise is the process of dynamic competition, for example the creation of new business opportunities within existing firms, or the setting up of new firms. Greater entrepreneurial activity can increase productivity. VAT-registrations are used here as a key measure of enterprise.
