The West of England Mayoral Combined Authority oversees economic development and strategic planning in the West of England region, including Bristol, South Gloucestershire, and Bath and North East Somerset.

A new Institute for Policy Research (IPR) report by Dr Chris Dimos, Dr Aida Garcia-Lazaro and Charlie Carter examines productivity and innovation in the West of England, and offers comparisons to other combined authorities across England. Using new microdata about the businesses in the region, provided by the Office for National Statistics, the researchers were able to analyse how productivity and innovation vary across characteristics like ownership, size and profitability.

The researchers found that while the firms in the West of England Combined Authority consistently have higher productivity levels compared to other combined authorities, the region falls behind on innovation. Unless this is addressed, they say, the lower innovation levels could hinder the region’s ability to enhance productivity further, potentially causing it to lag behind other combined authorities in the future.

The report also examines the motivations and perceived barriers to innovation in the West of England. The researchers found that a significant obstacle to innovation in the region is the shortage of qualified personnel, and highlight the value of supporting and prioritising education and on-the-job training programmes.

Other key obstacles to innovation are reported to be lack of finance and the high economic risk. Although these are pervasive across England, regional initiatives supporting the innovation activities of establishments and incentivising private R&D investment would be key in raising innovation.

Dr Chris Dimos says: “We hope that this work will help the West of England Mayoral Combined Authority tailor policies and funding opportunities to business needs in the region. Having identified key drivers and barriers, this study will act as a valuable tool for policymakers and stakeholders looking to enhance the region’s business environment and drive economic growth in the region.”