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.

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Last updated on 12 March 2002