Regulatory dividend

International Journal of Productivity and Performance Management

ISSN: 1741-0401

Article publication date: 1 July 2004



(2004), "Regulatory dividend", International Journal of Productivity and Performance Management, Vol. 53 No. 5.



Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited

Regulatory dividend

British business and the economy could benefit from a productivity dividend of at least £20 billion, if changes to the regulation of UK telecommunications are put in place.

This is the finding of a study by Spectrum Strategy Consultants and Indepen, which looked at how telecoms investment can stimulate productivity growth. They have used economic modelling to suggest that if certain regulatory barriers to innovation were removed, there would be a clear opportunity for British business to enjoy a productivity dividend equivalent to at least £20 billion.

They say that the impact of ICT investment and innovation on increased economic productivity in the USA correlated with the widespread networking of computers through telecoms in the late 1990s. The report concludes that there is a strong link between investment in telecoms innovation and business productivity. However, without decisive regulatory change to foster a more competitive market, a similar dividend from telecoms innovation for British business will not be realised.

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