Economic Complexity & the UK Economy
This project applies economic complexity analysis to the UK economy and explores how this novel empirical framework could offer useful insights for the UK industrial strategy. We first show that economic complexity metrics applied to UK local authorities are able to identify the most complex industries and places in the UK. These measures also shed light on the places most likely to experience higher future earnings growth. We then map the UK ‘Industry Space’, which is a network depicting the similarity in production knowledge for SIC (3 digit) industries and investigate each local authority’s position in this network. On the basis of a location’s current comparative advantage and their proximity to more complex industries, we explore likely industrial transitions and possible growth opportunities.