Nayak, S; Dias, C; King, M (2026) The Economic Impact of the National Measurement System Programme: A Business Case Model. NPL Report. IEA 34

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Abstract

This report presents the new business case model for quantifying the economic impact of the UK’s National Measurement System (NMS) programme. The model integrates two monetisable impact streams - Measurement Infrastructure and Innovation - drawing on a macroeconomic framework for conformance testing and empirical evidence from firm‑level econometric analysis. Using historic NMS funding as its baseline, it estimates both average and marginal rates of return to public investment. The analysis indicates that the NMS delivers substantial economic value: an average social rate of return of 10.91 and a marginal social rate of return of 6.86, representing lower‑bound estimates that exclude unquantified benefits from research and knowledge transfer. A value‑for‑money (VfM) assessment further finds that the programme generates £10.34 of Net Present Social Value (NPSV) for every £1 of public spending on average, and £6.50 per £1 at the margin, while also leveraging significant private‑sector investment. Overall, the model provides a robust and transparent framework for appraising NMS activities and a reproducible basis for evaluating alternative funding options.

Item Type:	Report/Guide (NPL Report)
NPL Report No.:	IEA 34
Divisions:	Strategy Directorate
Identification number/DOI:	10.47120/npl.IEA34
Last Modified:	24 Apr 2026 07:26
URI:	https://eprintspublications.npl.co.uk/id/eprint/10369