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77. Inclusive Productivity- Lessons from around the world

Kada research, in partnership with Ortus Economic Research, were commissioned by the North East Local Enterprise Partnership (now the North East Combined Authority) to undertake a research study to contribute to Our Economy 2023. The annual report provides an update on progress and change in the North East’s economy. The theme for 2023 focused on ‘inclusive productivity’.

Kada’s literature review on inclusive productivity informed a framework for analysing data on productivity levels, productivity drivers, and economic inclusion conducted by Ortus. The data assessed how regions around the world which performed similarly to the North East in 2008 changed over time. Kada then researched policy interventions and their economic impacts to find cases of exemplary performance. We presented the case study regions (West Midlands, New Zealand, Wisconsin, Saxony and the Basque Region) on behalf of the LEP in two afternoon workshops at the Our Economy event at the Catalyst in Newcastle.

The case study selections were made via a three-stage process. First a longlist was established of regions that were historically similar to the North East in performance against three key indicators of inclusive productivity, The second stage looked at more recent data to produce a shortlist of regions that showed similar or exceptional performance compared to the North East, from which policy lessons might be learned. The final stage involved desk research to identify those regions from which policy lessons were available and pertinent; these regions and policy lessons form the basis of the case studies.

The study findings highlighted the challenges that the North East faces such as lower productivity lower disposable income and a higher population living in relative poverty than global regions with similar historical economic performance. A key lesson from the case studies is the need to use new approaches to tackle health inequalities and remove barriers to work such as childcare through social and place-based interventions. The case studies demonstrated several common themes aimed at addressing similar issues to those faced by the North East, such as increasing youth employment and growing employment in a range of important sectors. The case study regions also show that a different economic future – and a positive future for the North East – is possible. The comparator regions have since seen overall better economic performance, growth in productivity, and growing household income, showing a trajectory the North East can aim for.

To see the case studies in full you can visit: https://evidencehub.northeast-ca.gov.uk/our-economy-23/our-economy-2023-international-case-studies

To see the full report and wider body of work: https://evidencehub.northeast-ca.gov.uk/our-economy-23

If you would like to find out more about our economic development consultancy, are thinking about commissioning a study or if you would like to talk through an idea you can contact us at info@kadaresearch.co.uk

“The lessons from the data and case studies come at a crucial time as the new Combined Authority plans how best to use devolution powers and funding to stimulate inclusive productivity growth. It has been pleasing to hear the new elected Mayor, Kim McGuinness, referring to lessons from former East Germany and emphasising policies issues our study featured like health, skills, and childcare.”

Sam Nair, Study Director.