In this paper, we investigate whether changes in the degree of entry regulation or in the degree of public ownership are associated with higher industry total factor productivity (TFP) growth of south European economies. We first estimate relative TFP levels and TFP growth rates across manufacturing and service industries of Greece, Italy and Spain using an endogenous growth accounting model. Then, we estimate the TFP growth impact of entry regulation and public ownership, within a productivity convergence framework. The empirical results indicate that a reduction in the degree of entry regulation is associated with higher industry TFP growth. On the other hand, the TFP growth impact of public ownership, although negative, is not statistically significant. The econometric estimates show that technology transfer and technological catch‐up are both important for higher productivity growth of south European industries.