FDI and local productivity . SOTA Review No 31
Published: 18 June 2019
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.
Productivity and performance
The State of Small Business Britain report 2019.
The increasing levels of political uncertainty in the UK sets the context for this review of trends in the small business community in mid-2019.
We seek to provide an overview of business confidence and the extent to which that is reflected in the key datasets we have been monitoring for many years. We focus on the following:
• Business Confidence
• Job Creation and Destruction
• Firm Growth
Alongside this we will highlight some of the key messages coming out of our core research programme, which provide insights into current debates on high-growth, productivity and management practices.
Published: 27 June 2019
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.
Published: 20 October 2019
Enterprise Research Centre
Warwick Business School
University of Warwick
Coventry CV4 7AL
Enterprise Research Centre
Aston Business School
Birmingham B4 7ET
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