King, M; Renedo, E (2020) The economic impact of the National Timing Centre on collaborating companies. The value of additional public funding to support the adoption of more resilient timing and synchronisation solutions in the UK. NPL Report. IEA 2

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Abstract

This document explains how the preferred option for the National Timing Centre (NTC) programme will aid the growth of UK-based firms, operating in specific sectors, whose innovation activities are supported by the centre. According to NPL’s preferred option, the centre will provide access to specialist facilities to test the performance of new products and will build expertise through collaborative R&D projects and training services. (This document only considers the preferred option and does not review the expert-led options analysis given in the outline business case.)
NPL has a long history of evaluating the economic effect of its programmes, demonstrating a strong connection between firms’ employment growth and past use of NPL’s products and services. This evidence has been used to populate parameters in a model that connects public funding from BEIS to employment growth among firms that received support from NPL. In short, the analysis in this document estimates the expected effect of the NTC on customers and collaborators by regarding the resourcing of this new centre as equivalent to an increase in the funding that NPL receives from BEIS.
Moreover, the analysis in this document does not account for the cost of setting up the NTC; but nor does it consider the potential benefits of preventing (or mitigating) disruption to infrastructure that relies on GNSS signals for timing and synchronisation. Rather, it considers the extra costs and benefits of the innovation activities entailed by the preferred option. That is, the analysis proceeds as if the NTC had already been built, thus, providing some back-up in case of disruption to GNSS, so that question now being asked is ‘should government provide additional funding (e.g. resources spending at NPL and grants for firms) so that the NTC can support the development and commercialisation of new timing and synchronisation solutions?’ Based on this approach, the analysis finds an expected gross benefit of £83m, which leads to a net present value of £57m once investment costs are deducted over a tenyear appraisal horizon.
The first section motivates the document and presents a sketch of the analysis. Sections 2 to 4 provide a market analysis, some technology foresighting, and explain how the NTC will generate value through supporting innovation. Section 5 to 10 set up the model and take the reader through the analysis. Lastly, there is a series of annexes that discuss benefit mechanisms and further details of an econometric analysis.

Item Type:	Report/Guide (NPL Report)
NPL Report No.:	IEA 2
Subjects:	Time and Frequency > Time
Divisions:	Strategy Directorate
Last Modified:	17 Jul 2020 10:31
URI:	http://eprintspublications.npl.co.uk/id/eprint/8594

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