Nayak, S; Olakojo, S; King, M (2023) NMS Support for Innovation and Business Outcomes: A Synthesis of Evidence from Belmana’s Econometric Analysis. NPL Report. IEA 17

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Abstract

Belmana Ltd was commissioned by the National Physical Laboratory (NPL) and Innovate-UK (IUK) to conduct an impact assessment of the innovation support provided to a large sample of UK firms. Belmana’s analysis examined how this support affected the subsequent performance of these firms in terms of their employment, survival, and wage premiums. Additionally, Belmana provided exploratory analysis for firm productivity, patenting activity and knowledge spillovers. There was, however, a need to distil this analysis to extract key findings specific to NPL and other laboratories funded through the National Measurement System (NMS) programme. The headline findings for innovation support provided by the NMS laboratories are:

An average annual growth of 6.31 employees per regularly supported firm.
Only 4% of firms that receive regular support closed during a 7-year period as compared to 12% of firms in the matched control group.
An average annual wage premium of £4,083 for employees switching to supported firms.
Moreover, this document develops a stylised economic model which helps with the interpretation of the estimates and provides further economic insights. The hope is that this will make it easier for non-specialist audiences to better grasp some its key findings. Hence, this document offers a simplified digest of the original report, spells out some of the implicit assumptions of empirical analysis, and presents a microeconomic model that compliments the econometric estimates.

As supplementary material for this document, we have published the original Belmana report for readers who are interested in the full, detailed econometric analysis contained in that report.

Item Type:	Report/Guide (NPL Report)
NPL Report No.:	IEA 17
Divisions:	Strategy Directorate
Identification number/DOI:	10.47129/npl.IEA17
Last Modified:	10 May 2023 09:43
URI:	https://eprintspublications.npl.co.uk/id/eprint/9682