Case study: Understanding the economic

London Development performance of London’s

Agency sectors

London Development Agency (LDA) required analysis

of London’s sectors to form the economic evidence base
for the LDA’s Corporate Investment Strategy: Sectors
Review. By providing a detailed and up-to-date picture
of London’s principal sectors – their performance and
prospects and key value chains – Experian have provided
policymakers with the evidence required to stimulate the
discussion around sector strategies and the need for and
nature of intervention.

Challenge To assess the significance of the

Responsible for the delivery of the
Mayor’s Economic Development
Strategy, the LDA identified a need for
a detailed understanding of London’s
sectors, and the linkages between
them, as well as international linkages
in order to consider the rationale for
sector based intervention.
Solution
Our approach to this research
combined in-depth understanding
of the London economy, including
previous London sectors work, with
experience in modelling supply-chains
and regional impacts.
We provided a comparative analysis
of sectors of the London economy in
order to understand which sectors
make the greatest direct contribution
and which will drive the expansion of
the economy going forward.The social
and environmental implications of this
expansion were also taken into account.
links between sectors we employed a
combination of desk based research
and economic modelling. UK input-
output accounts were supplemented
with London specific data in order to
understand the value of purchases and
sales within the London economy.The
multiplier effect of each industry was
calculated to identify which sectors
have the greatest influence on the
performance of the wider London
economy.
Spatial analysis was undertaken to
examine which sectors are more closely
linked to the rest of the UK and global
economy, as well as examining which
attract the most significant investment
from overseas, both from traditional
sources and emerging economies.
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Results The approach used in this project

This insight has provided has informed Experian’s further
policymakers with a detailed value chain analysis such as our
understanding of London’s position ongoing work with the Manchester
in the global value chain. It has Independent Economic Review
highlighted the interdependencies (MIER), identifying the supply
between each of the sectors and chains and spatial linkages for the
their individual contribution to the Manchester City Region.
London economy. The LDA are
using this robust evidence base for
the wider Sectors Review and to
determine whether sector based
intervention is required.

© Experian 2008.

For further information please The word “EXPERIAN” and

the graphical device are trade
contact Heather Wells: marks of Experian and/or its
associated companies and
may be registered in the EU,
T 44 (0) 207 746 8242 USA and other countries. The
graphical device is a registered
heather.wells@uk.experian .com Community design in the EU.

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