April 24, 2017

TIGA, the network for games developers and digital publishers and trade body for the video games industry, says that the Government’s industrial strategy should have an overarching theme: eliminating the productivity gap that exists between the UK and other G7 countries. TIGA made the comments in a report, A New Industrial Strategy: Strengthening Productivity in Firms, Sectors and the UK. The report sets out TIGA’s response to the Government’s industrial strategy Green Paper.

TIGA’s report proposes that the UK’s industrial strategy should be animated by three principles:

• it should generally favour competitive markets over detailed central planning;
• it should entail removing obstructions to business growth, addressing market failures and providing public goods; and
• it should involve both generic and sectoral approaches to the economy. Distinct sectors have separate challenges that may require different policy responses.

These principles and the industrial strategy should be linked by the proposed overarching theme of eliminating the productivity gap that exists between the UK and other G7 countries.

TIGA says that productivity is critical to business competitiveness and to improving living standards. Increases in output per hour enable firms to increase pay without having to raise prices and to stay competitive against other firms. Higher pay results in higher tax receipts for the Government. Improving productivity will enhance the UK’s ability to attract overseas investment.

Dr Richard Wilson, TIGA CEO, said: “Currently, UK workers are less productive than their counterparts in every G7 country apart from Japan and on average the productivity gap between the UK and the rest of the G7 is approximately 20 per cent. This is partly because we invest less than many of our competitors and some UK workers are relatively less educated than their compatriots in competitor countries.

“TIGA supports the Government’s intention to develop an industrial strategy: its overarching theme should be to eliminate the productivity gap that exists between the UK and other G7 countries.

“To achieve this, we must invest more and invest effectively in our infrastructure, R&D, science and engineering and in our businesses. We must make decisive improvements in education and training. We must promote innovation and best business practices.” To read TIGA’s press release in full and for information on how to get hold of a copy of the report, click here.