ABSTRACT
Introduction One of the most persistent worries about the long term performance of the British economy has been under-investment in both physical and human capital. In the 1980s and 1990s market based solutions were tried. These failed to raise the investment share, the long term growth rate, or significantly close the industrial productivity gap with countries like France and Germany. As the economy enters the new century, concerns about investment in capacity and people have returned to dominate the policy agenda.
