§ Simon HughesTo ask the Secretary of State for Trade and Industry how many businesses have been helped by the London Development Agency in(a) Greater London and (b) each London borough in each year from 2000; what the average sum of money received by these businesses is; how many of the businesses helped are still operating; and how many of these businesses have increased their profitability. [177128]
§ Nigel GriffithsThe London Development Agency's (LDA) performance is assessed by the Mayor and Government against a framework of key targets, including the number of businesses created/attracted/retained/expanded,1 and the number of business interventions.2 The following table summarises the total number of businesses created/attracted/retained/expanded as a direct result of LDA activities from March 2001. The LDA did not collect data along these lines in 2000–01. Figures cannot be accurately generated for each London borough, as the businesses assisted are not necessarily based in only one location.
1New businesses starting full time operation within the region and sustained for at least 12 months or business retained within the region as a result of direct activity. Expansion refers to an increase in the workforce of at least 5 per cent.
2 The provision of non-financial support to businesses.
Reporting year LDA target Outputs achieved 2001–02 1,785 2,073 2002–03 990 1,368 The business interventions target was introduced for 2003–04. Performance data for 2003–04 will be published in July 2004 by the GLA and the Department for Trade and Industry.
Because much of the support that the LDA gives to business is indirect and is not in the form of financial subsidy, the LDA does not collect figures on the average sum of money received by businesses.
Apart from the data needed to monitor whether businesses added to the regional economy have been in operation for at least 12 months, the LDA does not collate statistics on the number of businesses it has supported continuing to be in operation, nor on their profitability.
§ Simon HughesTo ask the Secretary of State for Trade and Industry how much has been allocated to support businesses in London in each of the last 10 years, broken down by(a) sector and (b) borough. [177178]
§ Nigel GriffithsInformation on the allocation of business support is not readily available at a sector and borough level, and could be compiled only at disproportionate cost.
§ Simon HughesTo ask the Secretary of State for Trade and Industry what international research her Department has commissioned concerning state support for business development by sector; and if she will place the results in the Library. [177179]
§ Nigel GriffithsIn 2001 DTI commissioned a study, 'People as Vectors of Technological Capability in Technology, Knowledge and Skills Transfer Schemes'. The emphasis of the study was on technology transfer718W and the means by which business could acquire specialist skills and knowledge without the costs and risks of employing specialist staff. It concluded that such knowledge transfer schemes have strong theoretical and empirical support in international practice. Two of DTI's innovation related products are designed to facilitate knowledge transfer.
DTI has recently completed a series of Sector Competitiveness Analyses in the following sectors: construction; electronics; call centres; plastics processing; and retail sectors. Further Sector Competitiveness Analyses are underway in the following sectors: software and computer services; and healthcare equipment. These studies, which have a large economic component, aim to compare the UK sector's labour productivity with that of other countries and to investigate the reasons for differences. The results will be used to inform decisions on the DTIs provision of support for business.
A further study is under way to review the literature relating to policies designed to promote enterprise in developed market economies, particularly the USA, France and Germany. This review will cover both underlying philosophies and strategies and specific policies related to the promotion of enterprise. The research, due to be completed by the end of June will include in depth studies of policy and practice in: US, Sweden, Germany, Australia and Canada plus reviews of Specific initiatives in other developed economies.
Copies of all studies will be made available in the Libraries of the House.