supporting networks of organizations that nurture the culture of research development and innovation. r & d institutions have to be supported by standard setting organizations, technical consultancies and the like so that firms have adequate technical support systems. clusters and incubators are also needed for creating such supportive environments for small and medium firms. but innovation also comes embedded in both labour and capital. as investment picks up, new machines are installed that have newer technology embedded in them. for the same price the new machine does much more than the old one. the revolution in machine tools with embedded new information technology over the last 20 years is a case in point. another example could be what is happening to cell phone technology with multi - tasks, at lower prices. a great deal of work can now be accomplished on the cell phone even when people are travelling. thus, a great deal of innovation gets embedded in new capital, and all these changes enhance efficiency and productivity. similarly, on the human capital side, newly trained manpower comes with newer skills. they do the same jobs much faster than the less trained older labour force. as organisations renew their labour force or impart training to their existing workers they are likely to increase their pace of innovation and productivity growth. all such developments that promote innovation and productivity growth are of the utmost interest to central banks. while it is interesting to note that productivity appears to have picked up worldwide over the last decade or so and new investments could have been the source of its acceleration, the implications of such positive shocks for sustained growth need to be understood. the rapid replacement of new technology means that the technological progress gets embedded in the accumulation of fresh capital stock at a faster rate than would otherwise be the case. second, recent research shows that new technology is quite sensitive to movements in the cost of capital. a combination of high price elasticity and the declining price of high - tech equipment also contributes to an investment boom. third, these investments have considerable externalities or spill over effects. the application of new technology has helped to reduce operating expenses and as a result of higher productivity there has been considerable stability in labour costs. globalisation in terms of outsourcing combined with the availability of new skilled labour in china and india has also contributed to low inflation worldwide. combined with the impact of competition in exercising pricing leverage, these developments have helped significantly in containing inflationary pressures during the expansion phase of global gdp over the past decade. in this process, the law of supply creating its own demand also operates. first

than 75 % of their resources to enhance cooperation with the single supervisory mechanism, thereby ensuring that banking supervision is conducted according to high quality standards and consistently across all credit institutions. the bank of greece's constant support to the single supervisory mechanism is confirmed by the significant increase in these departments'staff over the past decade ( with headcounts rising by more than 60 % in joint supervisory teams ( jsts ) and almost doubling in the inspection sections since 2014 ). the supervisory board decided in 2021 to launch the " ssm integration project ", as it became clear that most cooperation initiatives had focused on improving the functioning of jsts, rather than of horizontal units. the reorganisation of the single supervisory mechanism has highlighted the need to enhance effectiveness and efficiency through the optimal use of available resources and knowledge. in this regard, a number of initiatives have been developed jointly with the national supervisory authorities, aimed to foster a common ssm culture and career paths, build a team spirit, coordinate work and further develop common tools and technologies. you will learn more about these actions, which the bank of greece actively supports, in the presentations that will follow. today's event gives us the opportunity to share information, experience and knowledge, and to gain a deeper understanding of the objectives of the single supervisory mechanism. joint commitment ensures the soundness of supervised credit institutions and enhances the stability of the financial system in europe. each one of us, and all of us together in a coordinated manner, can improve the existing collaboration between the european central bank and the national supervisory authorities and contribute to the further integration of the european supervisory function. before inviting mr tsikripis to speak, let us watch a 3 - minute video that explains what the single supervisory mechanism is. thank you! 2 / 2 bis - central bankers'speeches