The indicators identified in the analysis of the business environment, resources and innovation process chapters all contribute to economic success.  However, performance ultimately needs to be judged by results.  This section looks at five indicators that measure how successful the UK has been in terms of achieving competitiveness in the knowledge driven economy:

• Output per head – the best measure of overall economic performance.

• Labour productivity – the most important determinant of prosperity.

• Employment – a successful and sustainable economy should be able to provide employment for its workforce.

• Trade specialisation – the UK’s trade performance can indicate the extent to which we are specialising in knowledge intensive activities.

• Composition of output – analysis of how the structure of the UK economy is changing shows the extent to which the increased use and importance of knowledge is being reflected across the economy as a whole.

Last updated on 12 March 2002