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

      ·         Macroeconomic stability – macroeconomic instability  
            affects business confidence and can have a negative  
            effect  on investment  and long term planning decisions.

       ·       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.

        ·     Quality of life – a goal in itself but also a key
            determinant of  economic  performance in a globalised
            economy where attracting  key knowledge workers is an
            important factor in competitiveness.

Last updated on 20 November 2003