Nigel Driffield

Professor of International Business

Nigel Driffield is Professor of International Business at Warwick Business School in the UK, having held a similar post at Aston Business School for 10 years which included a spell as the Dean of the Business School. He has a PhD from Reading University, and has published some 75 academic papers across a range of disciplines including international business, regional science, finance, and economics. He recently held a prestigious Leverhulme Fellowship, investigating the impact of internationally mobile capital on both home and source countries, particularly in terms of competitiveness and labour markets.

Contact Details

Email:[email protected]

Biography

Nigel Driffield is Professor of International Business at Warwick Business School in the UK, having held a similar post at Aston Business School for 10 years which included a spell as the Dean of the Business School. He has a PhD from Reading University, and has published some 75 academic papers across a range of disciplines including international business, regional science, finance, and economics.  He recently held a prestigious Leverhulme Fellowship, investigating the impact of internationally mobile capital on both home and source countries, particularly in terms of competitiveness and labour markets.

Research Report

Spillovers from inward investment – a comparison of Northern Ireland with the rest of the UK.

The purpose of this exercise is to explore the variation in spillovers from inward investment in different parts of the UK. We seek therefore to quantify (and briefly discuss) the average effect for the UK, and subsequently explore differences in this apparent value across locations.
In order to put our analysis in context it is necessary to understand what we mean by spillovers, and how they have come to be interpreted.
Section 1 provides a framework by which one can quantify and subsequently explore the nature of apparent spillovers from Foreign Direct Investment (FDI) between regions. The purpose of this analysis is to report some results concerning the variation in the productivity effects of FDI across UK regions, but also to offer some thoughts as to why this is the case.

Author

ERC,, Driffield, Nigel, Lavoratori, Katiuscia

Research Report

Understanding value added per employee in six UK sectors: The insiders’ view

The UK’s productivity puzzle has attracted much attention which has focused on the growing gap in productivity between the UK and its key international competitors. Often denominated in terms of ‘value added per employee’ or ‘value added per hour worked’ – both measures of labour productivity - the UK’s productivity slowdown has been longstanding but has been particularly notable during the post-recession period.

Statistical analyses have emphasised that ‘the vast majority of labour productivity growth weakness arises due to changes in productivity growth within detailed industry groups’. These variations in sectoral productivity trends since the recession provide the starting point and rationale for this report. What are the origins of these diverse trends? Are these the consequence of intra-firm issues linked to leadership and management or technology? Or, sector specific factors such as regulatory regimes or market competition?

Our approach is primarily qualitative and draws on the experience and knowledge of industry insiders in six sectors – business leaders, analysts, commentators and policy-makers. Detailed conversations were held with over 80 informants across six sectors between February and April 2019. This type of qualitative approach is of value to both reflect the wide range and variety of influences on value added and how these influences have and are changing.

Author

ERC,

Associated Themes
  • Productivity and performance
SOTA Review

FDI and local productivity . SOTA Review No 31

The debate concerning the impact that attracting inward investment can have on local productivity has raged for some 30 years. The essential reason for this is that is that there was a juxtaposition between “cost per job” estimates regarding the benefits of seeking to attract inward investment through subsidy, and the firm-based academic literature that analysed firm internationalisation in terms of the new technology or knowledge that often accompanies foreign direct investment. Cynically, one may argue that the emphasis that was placed on determining the productivity growth effects of inward investment was an attempt to justify such subsidies, even when cost per job calculations were unfavourable, but both the policy-based and academic literature represents increasingly detailed attempts to determine the nature of the wider economic benefits of attracting inward investment.

Associated Themes
  • Productivity and performance
SOTA Review

How Can We Attract and Retain More Internationally-mobile R&D? SOTA No 3

As the world becomes ‘flatter’ and firms have more locations available in which to site their activities, more and more locations are chasing the ‘holy grail’ of attracting high-tech activity, and particularly R&D. This is, however, often in the absence of a clear strategy of how to retain this investment once it has landed, and how to best encourage interactions between internationally mobile capital to maximise the benefits of that investment for a region. This review explores the empirical literature on the location of R&D and other high- tech or innovation-intensive activities and explores the main findings of this in the context of local economic development or inward investment strategies.

It is important to consider the nature of local labour markets in this context. Attracting high-tech investments often requires a degree of migration into a region. Firms recognise that in these activities they are engaged in a ‘war for talent’ such that earnings growth in these sectors far outstrip more general wage increases. As such, firms need to be convinced that in addition to the pool of labour already in a given location, more can be attracted from elsewhere. This issue is however somewhat at odds with the existing evidence, which focuses on financial incentives or tax policy as the means to attract such investments.

Associated Themes
  • Innovation