The article provides an insight into the dynamics of total factor productivity of the leading European countries (the UK, France, Germany, Italy, Spain) and the US. The current state of technological development has been assessed and promising areas of impact to ensure sustainable socio-economic development have been identified. The aggregate factor productivity growth (human capital, resource allocation and openness of the economy) is systematized. Methodologically the articleis basedon the system approach, along with comparative and statistical analysis. The article explores prospects for stimulating innovative development at the country level: Global Innovation Index, Human Development Index, Global Knowledge Index, number of patent applications, expenditures on health care, education and research and development, etc.Based on these indicators, a grouping of countries with similar development trends was identified as follows: USA and the UK, France and Germany, Italy and Spain. Taking into account the result of the impact of the above factors, countries can adjust their socio-economic programs in order to optimize the implemented strategies.