Innovation boosts productivity by two-thirds

Innovation is an essential driver for regional economic growth and a new national report has revealed how significant it can be in closing the productivity gap.

Two thirds of private sector productivity growth between 2000 and 2007 was driven by innovation, claims a new report by NESTA.

The findings are revealed in The Innovation Index: Measuring the UK’s investment in innovation and its effects (PDF, 1.59mb), the most ambitious attempt yet to measure the contribution of innovation to the UK’s economic growth.

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West Midlands economy suffers further falls

The latest West Midlands Chamber of Commerce Quarterly Survey released today makes grim reading as it reports further declines in economic output and a worsening of prospects for the next quarter.

Manufacturing firms in the West Midlands reported significant falls in domestic orders and further worsening of exports. This is impacting on investment and confidence, with fewer firms reporting plans for capital investment as expectations of profitability and turnover decline.

In services the picture is mixed, with domestic orders falling but strong growth in exports. Employment growth, while positive, has slowed on the previous quarter and cashflow has deteriorated. In the light of the continuing uncertainty the survey reports business confidence levels falling.