Presents studies which represent the first stages of a new approach to develop microeconomic evidence for policies to promote productivity and competitiveness. Examines how Department of Trade and Industry policies may influence the dynamic process of competition and UK productivity growth, examining the effects of total factor productivity. Discusses the economic impact of information and communications technology (ICT) investments and identifies key factors, such as skills gaps, which may be constraining the UK economy from achieving a US-style productivity response to investment in ICTs. Provides an analysis of productivity using plant-level evidence to look at skills, innovation, small firms, and entry and exit of plants. Suggests that this approach enables key industrial policy issues to be examined using panel data and new econometric and other statistical techniques which can improve the evidence base on the impact of business support.

The reviews of the Department of Trade and Industry in Autumn 2001 placed analysis at the heart of policy-making. As part of this process the Department has decided to make its analysis and evidence base more publicly available through the publication of a series of economics papers that will set out the thinking underpinning policy development.

The research presents studies discussed at a recent conference organised by the Department of Trade and Industry. The three studies are all cross-cutting pieces involving the co-operation of several government departments and are leading edge in helping to establish new microeconomic evidence for policy in areas relevant to productivity and competitiveness.

The research finds that all the studies covered represent new approaches to developing microeconomic evidence for policies to promote productivity and competitiveness.

Department of Trade and Industry
Phone: +44 20 7215 5000
dti.economics@dti.gsi.gov.uk

01/04/2004

research

Urban Policy > Economy knowledge & employment > Urban economy

Competitiveness