The Cisco Productivity Index has shed light that the UK could have seen a 7.5% growth in its economy, which represents a gain of £140bn in GDP, had all the boroughs hit their benchmark productivity level using the power of technology.
Cisco, which partnered with Oxford Economics, measured the productivity of 391 UK areas against their industrial benchmark to come up with the figures.
According to the company, the Cisco Productivity Index explains about the non-industry factors that can be unique to each area, whether it is technology investments or the quality of road, rail and air connections.
The study found that had the key British cities achieved their potential productivity, they could have helped in adding close to £18bn a year, which amounts to 1% of the country’s GDP.
As per the Cisco Productivity Index, all 10 core cities in the UK are lagging behind their productivity benchmark levels, with six of them falling short by more than 10%. Bristol has been found to be the best performing city, reaching 98% of its industrial productivity standard.
The Cisco Productivity Index has been dominated by London boroughs, with 15 of the 20 strongest-performing regions belonging to Greater London. In contrast, eight of the 20 weakest-performing regions belong to Wales, found the study.
Despite being the eight largest economy in the world, the UK’s productivity has been stagnant for the last 10 years or so, and on average the country has been producing a third less each hour than its French, US and German counterparts.
The Cisco Productivity Index for the UK shows that productivity is a complicated thing that is defined by specific challenges in each geographic region. However, the study suggests that every region in the UK can exploit more of its potential by focusing on technology, people, business structure and innovation, and geography and physical infrastructure.
Cisco UK & Ireland chief executive Scot Gardner said: “Technology has the potential to have the same multiplying effect in regions, as it does in industry; it is the greatest lever we have to grow productivity, whether in the way it improves the efficacy of an organisation or the employability of individuals. This Index shows that there is a huge opportunity for the UK, if we collectively address local productivity levels.
“Our goal in creating this index is to provide practical solutions to the UK’s productivity puzzle at a local level.”