Achieving impact in local economic development

𝘿𝙤 𝙮𝙤𝙪 𝙩𝙝𝙞𝙣𝙠 𝙩𝙝𝙖𝙩 𝙮𝙤𝙪 𝙘𝙤𝙪𝙡𝙙 𝙞𝙢𝙥𝙧𝙤𝙫𝙚 𝙩𝙝𝙚 𝙧𝙚𝙨𝙪𝙡𝙩𝙨 𝙮𝙤𝙪 𝙜𝙚𝙩 𝙛𝙧𝙤𝙢 𝙮𝙤𝙪𝙧 𝙚𝙘𝙤𝙣𝙤𝙢𝙞𝙘 𝙙𝙚𝙫𝙚𝙡𝙤𝙥𝙢𝙚𝙣𝙩 𝙗𝙪𝙙𝙜𝙚𝙩?

The high-impact investments and activities are those which create jobs and GVA and have low amounts of displacement, duplication (of other support provided elsewhere) and deadweight.

⏬ In economic impact studies, “displacement” refers to the situation where an increase in economic activity in one area or sector leads to a decrease in economic activity elsewhere. It’s essentially a shift in economic activity rather than a net gain.

⌛”Deadweight” is the funding of activities that would have happened anyway, without public investment or action.

👊 Economic research and evidence tells us that certain types of activities pack a punch both locally and nationally:

**𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝘁𝗶𝗼𝗻𝗮𝗹𝗹𝘆 𝘁𝗿𝗮𝗱𝗲𝗮𝗯𝗹𝗲 𝗮𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀**: These are the highly competitive industries and economic activities which can be sold on international markets. They are often highly specialised and don’t displace other local firms ore jobs. They are the wealth creators, with high added value, and usually high productivity rates and profit margins.

**𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻-𝗱𝗿𝗶𝘃𝗲𝗻 𝗮𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀**: New technologies and products not only promise fresh growth but often usher in quality improvements that benefit all. With spillover effects and public good benefits, these activities elevate the playing field for everyone involved.

**𝗣𝘂𝗯𝗹𝗶𝗰 𝗴𝗼𝗼𝗱𝘀**: Are activities where many benefit, such as knowledge transfers from research and innovation, the creation of learning resources, or common resources and services such as business information.

**𝗦𝗼𝗰𝗶𝗼 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗻𝗲𝗲𝗱** addressing inequalities and deprivation, improving the economic participation and incomes of those with the lowest earnings – these actions have significant economic impact.

In economic jargon, these activities offer high net economic impact and low levels of
displacement.

For example in the field of enterpreneurship and business growth support, these initiatives are often considered as having more high-impact potential:

– Supporting businesses in crafting robust business plans and management systems
– Facilitating market expansion domestically and abroad
– Aiding businesses in securing external financing or investing in equipment
– Promoting Innovation and the adoption of new technologies
– Helping fast growth businesses
– Helping businesses improve their investment readiness to access private finance

I’d be happy to learn more about your high-impact projects and solutions?

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