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Evaluations of Specific Trade Services

Evaluation of the impact and cost effectiveness of UKTI’s Regional Network Support

UKTI has a regional network of International Trade Advisers (ITA) in the UK that provide professional advice on a range of export issues, including information and advice about export related support services provided by UKTI and other organisations.  The service is available both to businesses who are new to exporting and to experienced exporters that want to grow their business overseas; it is provided through two flagship UKTI services, Passport to Export and Gateway to Global Growth, and also through less formal one-to-one advice.

The research finds that there is a clear case for government support to help UK companies to enter foreign markets that is based on the existence of information-related market failures.  The services provided by UKTI’s Regional Network deliver substantial net financial benefits to UK businesses.  A survey of 600 businesses which included 300 UKTI customers and 300 non-customers, reveals that firms that received UKTI support show an increase in turnover by approximately 11% from 2010 to 2012, or an annualised growth in turnover of 5.5%, as compared with the matched sample of firms that did not receive the support.  Additionally, UKTI support has a significant positive effect on the likelihood of firms entering new overseas markets

See the full research report:

Evaluation of the impact and cost effectiveness of UKTI’s Regional Network Support

UK Trade & Investment has a strong commitment to robust independent evaluation research and has responded to the evaluation conclusions and recommendations as follows:

UKTI response to Regional Network Support evaluation

Economic Impact Evaluation of UKTI's Overseas Market Introduction Service (OMIS):

UKTI's Overseas Market Introduction Service (OMIS) is delivered by teams based in UK Embassies and Consulates in overseas markets. The service helps UK businesses to overcome barriers to entering overseas markets, and can typically include information and advice about an overseas market, or introductions to possible customers or business partners. The service is tailored to the requirements of each individual business, and is subject to a charge which is set at a level which varies with the intensity of the support.

The study focused on users of the service between 2006-2008, and used a methodology based on matching client data to data on the wider population of UK businesses from ORBIS and OFLIP, also incorporating data from the UK Intellectual Property Office on patents and trademarks for 2001 - 2010. Econometric techniques were then used to evaluate the impact of service use on the performance of the client businesses.

The analysis found that firms using OMIS were significantly more likely to report subsequent export turnover growth, to have higher growth rates of total assets, employment, turnover, and labour productivity. They are also likely to survive longer. The study estimated that the mean effect of OMIS on employment and total turnover growth, over a two year period, was £1.5m additional turnover, and 7 additional jobs. At the median, the impact was £611,000 additional turnover, and 3 additional jobs. Consistent with other studies, the analysis found that IP active firms are significantly more likely to report overseas turnover.

Intellectual Property, Overseas Sales, and the Impact of UKTI Assistance in Entering New Overseas Markets by Dr. Holger Breinlich (Essex), Dr. Giordano Mion (LSE), Dr. Patrick Nolen (Essex), and Dr. Dennis Novy (Warwick).

Evaluation of UKTI's Fiscal Stimulus Initiative

In 2009, various fiscal stimulus spending packages were announced by governments around the world to stimulate their economies in response to the global economic downturn. During this period, UKTI took forward a fiscal stimulus initiative which aimed to raise awareness of these global government stimulus packages and assist UK companies in exploiting these significant business opportunities. The programme was time-limited and ran for just over a year.

This research study looked to evaluate the impact and cost effectiveness of running such a programme and collate insights to reach UK companies to access overseas opportunities.

Evaluation of UKTI's Fiscal Stimulus Initiative (March 2012)

Evaluation of Passport and EMRS: Intellectual property, exporting, and UKTI support for export capability building by Mark Rogers and Christian Helmers

The UKTI Passport scheme is marketed at SMEs that are new to exporting. It offers a range of advice, access to international contacts, training and export development. The UKTI Export Marketing Research Scheme (EMRS) helps SMEs to carry out robust research relating to all major aspects of an export venture.

The study focused on firms that used Passport between 2003 and 2009, and those who had used EMRS between 1989 and 2009. The analysis investigated the links between firms’ use of intellectual property (IP) activity, exporting and UKTI support, and included econometric tests of the impact of support received through Passport and EMRS.

The analysis found that UKTI supported firms’ are much more IP active than UK SMEs in general. Passport firms are more than three times as likely to use patents than other UK SMEs. The study also evidence of positive impact of support on firm survival, IP use, and on asset growth. The impact on asset growth was stronger for Passport.

Intellectual property, exporting, and UKTI support for export capability building

Evaluation of UK Trade & Investment’s Tradeshow Access Programme (TAP)

The purpose of this evaluation was to review the economic rationale for the Tradeshow Access Programme, to assess the value for money it generates for the tax payer, and to make recommendations with a view to increasing benefits relative to costs.

The evaluation was undertaken in two parts concurrently – a literature review on the economics of trade shows and the role of the public sector; and an impact evaluation. The evaluation gathered and analysed a rich range of new evidence, as well as making full use of existing monitoring data.

In keeping with normal UKTI practice, the evaluation was overseen by an Advisory Group which included three senior academics as well as policy officials and evaluation specialists.

Evaluation of UK Trade & Investment’s Tradeshow Access Programme (TAP) Executive Summary (Sep 2008)

Evaluation of UK Trade & Investment’s Tradeshow Access Programme (Sep 2008)Evaluation of UK Trade & Investment’s Tradeshow Access Programme Annexes (Sep 2008)

The evaluation was also underpinned by evidence from a comprehensive review of literature on the economics of trade shows, trends in trade show attendance and development, and the role of governments in supporting trade shows.

A Literature Review on the Economics of Trade Fairs and the Role of the Public Sector (Jan 2008)

UK Trade & Investment has a strong commitment to robust independent evaluation and responded to the evaluation conclusions and recommendations as follows:

UKTI Response to TAP Evaluation

Evaluation of Intellectual Property and UKTI Passport Firms

The UKTI Passport scheme is marketed at SMEs that are considering exporting for the first time. It offers a range of advice, access to international contacts, training and export development.

This study focused on firms that used Passport during 2003 and 2004, and investigated their use of intellectual property (IP) and the impact of support. The analysis found that Passport participants are more likely to use all types of IP. The study also found evidence that Passport has a positive impact on growth in assets and turnover.

The use of IP by firms is commonly used as an indicator of innovation. The research finds that past use of IP is positively associated with future use of IP (i.e. there is persistence in IP activity). Foreign ownership, or having reported overseas turnover, is also positively linked to IP use. These results control for firm size, sector and region.

Intellectual property and UKTI Passport firms, Stage 2 Report (March 2008)

Stage 1 of the report contains an analysis of the characteristics of firms that used the UKTI Passport scheme in 2003-04 in comparison with all UK companies listed in FAME. The report provides provisional analysis of the performance of Passport firms in terms of survival rate and financial performance.

Analysis of linked Passport and FAME data for UKTI, Stage 1 Report (May 2007)

UK Trade & Investment Impact Evaluation of International Trade Teams

UK Trade & Investment’s International Trade Teams (comprising of trade advisers) provide an individually tailored service to companies to help them achieve their international business potential. Services range from helping to diagnose business needs and developing an appropriate action plan; providing information on target markets and helping to match products with the right buyer; and practical assistance in visiting overseas markets.

The report assesses evidence to strengthen the rationale for UKTI support; the impact and effectiveness of International Trade Teams; provides evidence on the strategic fit and variations in regional delivery; and value for money. It also makes a series of recommendations about how UKTI’s regional services may be enhanced going forward.

The research was based on a survey of UKTI beneficiaries, a stakeholder consultation programme and in-depth case studies.

Impact Evaluation of International Trade Teams (Dec 2006)

Impact Evaluation of International Trade Teams Annex A

Impact Evaluation of International Trade Teams Annex B

UK Trade & Investment has a strong commitment to robust independent evaluation and responded to the evaluation conclusions and recommendations as follows:

UKTI Response to Impact Evaluation of International Trade Teams