Productivity is a crucial measure by which to gauge the performance of sectors and economies. One measure of productivity that is particularly powerful is that of Gross Value Added (GVA). To date, measurements of GVA have only been available for the UK at very broad regional and sectoral levels. More detailed analysis has involved a 'top down' approach of apportioning total figures to sectors and geographies.
TBR have developed a method for calculating GVA from the 'bottom up'. This involves calculating GVA for individual firms on the Trends Central Resource (TCR) for which the necessary data is available, and from this sample grossing up to the required sectors and geographies. This is a much more 'data rich' method, resulting in much more reliable estimates.
Using this method TBR have, for the first time, made estimates of GVA and GVA per employee for a number of business clusters in the North East based on individual business data.
For more details on this project, or to discuss the application of this method to other geographies and sectors, please contact either Andrew Graves or Steve Mayes by e-mail, or by phone on 0191 281 9955.
An example of the application of our gross value added technique includes the Business Development Priorities project which was completed in April 2004 for the Tyne & Wear Partnership.