Standards worth £2.5bn to UK business
DTI Press release - 2006
Standards worth £2.5bn to UK business
Standards contribute £2.5bn per annum to the UK economy according to a new study published by the Department of Trade and Industry (DTI). The value of standards to the economy has been quantified for the first time ever and the research highlights their contribution to productivity, growth, innovation and international trade. Standards set rules, guidelines or definitions to help make business simpler by increasing the reliability of many goods and services and providing a common language for all businesses.
The DTI commissioned research reveals:
- Standards make an annual contribution of £2.5 billion to the UK economy;
- 13% of the growth in labour productivity is attributed to the role of standards;
- Standards are an enabler of innovation and facilitator of technological change; and
- The economic return from investment in standards makes sound business sense at both a macro and micro-economic level.
Lord Sainsbury, Minister for Science and Innovation, said:
"Industry standards, which spread best practice, are essential for business efficiency and gaining competitive edge. Standards are the foundation on which UK business builds success, innovates and increases productivity. This research shows standards make a significant contribution to the UK economy and are a valuable strategic tool for business. This report demonstrates the fiscal benefits of standards to British business and reveals the wider economic benefits to the UK economy and the consumer. It shows that Standards are at the foundation of making UK business more competitive by supporting innovation, streamlining business efficiency and providing a framework for sustainable growth.”
The research identifies standards as contributing to business in three specific ways:
1. Encouraging innovation:
Standards stimulate innovation and provide support for businesses from concept to market. They have the power to shape the way sectors work by sharing knowledge and creating effective synergies that accelerate the speed to market for products and services.
2. Foundation for growth:
Standards increase profitability by improving business efficiency and reducing costs, increasing consumer confidence and providing a foundation for growth.
3. Promoting market access:
Standards provide better access to markets and facilitate trade. They promote competition in the market place by helping industries capture knowledge, share insight and with it reduce risk. |
