Policy conclusions WP4

Summarising the most important policy lessons from the research undertaken related to factor relocation with a special focus on weak dynamism of European SMEs and startups Policy suggestions will relate to the side effects of unconventional monetary policy and the forbearance in bank restructuring for the survival of zombie firms and for employment growth and productivity of new SMEs Further policy implications will be derived regarding the consequences of labour market institutions and skill shortage for firm dynamism and suggestions will be formulated on which type of foreign competition is conducive for productivity maximising factor allocation