MEASURING THE ECONOMIC BENEFIT FROM R-AND-D - RESULTS FROM THE MASS, LENGTH AND FLOW PROGRAMS OF THE UK NATIONAL MEASUREMENT SYSTEM

This study sought to measure the economic consequences of reduced expe nditure on specific sections of the UK National Measurement System (NM S), part of the state-funded technological infrastructure. A method wa s developed which can be adapted to any publicly or privately financed R&D of which the benefits and cost-effectiveness are unclear or conte sted. The recent interactions between the NMS and industry were invest igated empirically. Five mechanisms were found to account for the majo rity of instances of successful value creation. Several case studies o f each mechanism were collected, illustrating their existence beyond r easonable doubt. Each of the cut projects would have been expected to have encouraged growth and profitability in identified sectors of the economy through one or more of these five mechanisms. The effects of t he cuts were modelled over 30 years. Compared to the costs of the cut projects projected over the same period, the benefits to the economy w ere predicted to exceed the costs.