Tuesday, 27 Mar 2012
Evaluations of Inward Investment Support
The role of Foreign Direct Investment in the UK IP and the impact of UKTI support
The purpose of this study was to look at the contribution of foreign owned firms in the UK to the UK intellectual property (IP) activity over the period 2006-2010. The study also assesses the impact of UKTI assistance on the performance of supported inward investment businesses.
UKTI Inward Investment Evaluation Case Studies
The research was designed to address an evidence gap highlighted in the Relative Economics Benefits study (2006) on how inward FDI impacts on competitiveness at the firm/plant level. Evidence on knowledge spillovers from FDI is generally inconclusive, although the study found evidence of spillover effects occurring in some circumstances for inward investment, where domestic businesses have the capacity to absorb such knowledge.
This research consisted of a review of literature, which was presented and tested at an academic seminar, and which identified research themes for an extended case study methodology.
An extended case study methodology allowed for the gathering of qualitative firm-level information, in order to understand the spillover/transmission channels at the firm/plant level and the dynamic impact (i.e. the changing nature) of inward investment.
The novel aspect of the extended case study approach was that it included consultations not only with the investors but also with their market contacts. The consultations with the range of connected parties were used to examine the various potential forms of spillover channels identified through the literature review.
Please note, company names included in the report are fictitious to protect the anonymity of participants in the study.
Evaluation of UK Trade & Investment’s Global Entrepreneur Programme (GEP)
The GEP was launched by UKTI in 2003 in response to the challenges outlined in the 2001 White Paper Opportunities for All in a World of Change. The programme is underpinned by the view that entrepreneurs look beyond national borders for the most attractive sources of capital, talent, guidance and access to markets. The key objectives of the programme include attracting entrepreneur led, early stage high growth potential, technology businesses and overseas based entrepreneurs to pursue new opportunities in the UK; and enhance perceptions of the UK as an entrepreneurial economy and location of choice for global entrepreneurs looking to internationalise their businesses at an early stage from a UK base.
The purpose of this evaluation study was to assess the economic rationale for attracting global entrepreneurs and early stage businesses to the UK and evaluate the impact and cost effectiveness of the Global Entrepreneur Programme, including the value for money it achieves for the taxpayer. The evaluation gathered and analysed a rich range of new evidence, as well as making full use of existing monitoring data.
UKTI has a strong commitment to robust independent research and has formally responded to the review findings and recommendations.
For more information see the Global Entrepreneur Programme website.