In terms of productivity per worker, Germany does pretty well.
My guess is that because there are all sorts of limits on how much people can work (there are lots of holidays here) so the industries that tend to survive are those that are highly automated, and have high productivity per worker.
My feeling is that productivity-per-worker is essentially a political choice. Low skill, low automation labour is inherently unproductive, but it's also flexible and it doesn't require any strategic direction from the state. High skill high automation jobs are very productive, but they are brittle - if the market moves, all that skill and tooling becomes worthless.
The German (also Japanese) approach isn't all sunshine and rainbows, though. In Germany, for example, a pack of ten paracetamol costs like four euros. That's about a 100x markup from what paracetamol actually costs. This is because in Germany, pharmacies are protected from competition, to preserve the sector. The same is true of taxis, for example.
My guess is that because there are all sorts of limits on how much people can work (there are lots of holidays here) so the industries that tend to survive are those that are highly automated, and have high productivity per worker.
My feeling is that productivity-per-worker is essentially a political choice. Low skill, low automation labour is inherently unproductive, but it's also flexible and it doesn't require any strategic direction from the state. High skill high automation jobs are very productive, but they are brittle - if the market moves, all that skill and tooling becomes worthless.
The German (also Japanese) approach isn't all sunshine and rainbows, though. In Germany, for example, a pack of ten paracetamol costs like four euros. That's about a 100x markup from what paracetamol actually costs. This is because in Germany, pharmacies are protected from competition, to preserve the sector. The same is true of taxis, for example.