Dias, C; King, M (2024) Input Output analysis: A Pilot Study assessing the flows of NPL's impact into final demand. NPL Report. IEA 21

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Abstract

The document describes a pilot study using Input-Output (IO) analysis to track the National Physical Laboratory's (NPL) support to businesses in terms of income and Gross Value Added (GVA) growth. It employs IO tables to account for interdependencies in the economy. The study identifies end-users of NPL's support as the broader economy, mapping its impact on final demand/use/GDP. It notes that injections into the economy, like investment and net exports facilitated by NPL, lead to real GDP growth. Additionally, it explores indirect benefits, such as those resulting from the dissemination of calibration knowledge. The analysis reveals that NPL's impact is particularly significant in boosting exports, with exports of goods to the EU and rest of the world being 2.69 and 2.75 times higher than the UK economy as a whole and suggests variations in impact across different NPL subdivisions. Moreover, it observes a decoupling between productivity growth and emissions, with economic impact increasing by 11.6% while emissions decreasing by 11.4% between 2016-2021. The study proposes further analysis, including a market analysis of NPL's supported firms and an investigation into its impact on trade. It acknowledges the limitations of the pilot study and the need for future research to address missing aspects such as health-based benefits and policy influences.

Item Type:	Report/Guide (NPL Report)
NPL Report No.:	IEA 21
Subjects:	International
Divisions:	Strategy Directorate
Identification number/DOI:	10.47120/npl.IEA21
Last Modified:	10 Apr 2024 13:16
URI:	https://eprintspublications.npl.co.uk/id/eprint/9961