Exhibit 17: Labor Productivity Growth for Exhibit 18: US Financial Conditions Index Different Groups of Firms Conditions tightened significantly due to global shocks Rapid productivity growth of firms at the frontier of emanating from the Eurozone, oil prices and China. innovation is not spreading to the rest of the industry. Index, 2001=1 (Log Points) US Financial Conditions Index 15 ——— Frontier Firms—Top 5% in Each Industry/Year 101.5 Frontier Firms—Top 100 in Each Industry/ Year = — — — -Non-Frontier Firms 101.0 14 1.39 fi 104bp ee 100.5 | 13 4 it0.0 +142bp +118bp 1.2 99.5 - 11 ene Tr el i. ee ; 1.0 me 98.5 + 0.9 98.0 2001 2003 2005 2007 2009 2011 2013 2010 2011 2012 2013 2014 2015 2016 Data through 2013. Data through year-end 2016. Note: Average across 24 OECD countries and 22 manufacturing and 27 market services Source: Investment Strategy Group, Goldman Sachs Global Investment Research. courte vestment Strategy Group, OECD preliminary results based on Dan Andrews, Chiara Criscuolo and Peter N. Gal, “Mind the Gap: Productivity Divergence Between the Global Frontier and Laggard Firms,” OECD Productivity Working Papers, forthcoming. the rest of the industry. Baily and Montalbano crisis spread from Greece to Spain and Italy. suggest that increased regulation after the crisis The Eurozone crisis was followed by a series may be partially responsible for the widening gap of what the Brookings Institution has called the between frontier firms and the rest of the industry, “fiscal fights of the Obama administration.” The which lowers overall productivity growth rates first fiscal fight resulted in the Standard and Poor’s across the economy and hence lowers the pace of (S&P) downgrade of US Treasury debt in August economic growth. 2011. The equity markets, as measured by the S&P Our colleagues in GIR think that lower capital | 500 Index, dropped about 19% between April and investment accounts for the lack of diffusion of October of 2011. new technologies from more prod