Investment Potential Index: informing UK investment opportunities

ForrestBrown has developed the Investment Potential Index (IPI), a powerful tool for C-suite decision-makers considering new or additional investment in the UK. Using multiple indicators, it measures investment potential across the UK, helping you identify untapped potential.

Working with innovative businesses from Cornwall to the Orkney Islands ForrestBrown understand how local economic factors – from the quality of digital infrastructure to availability of a skilled workforce – can contribute to commercial success. We also know that the headline data doesn’t always tell the whole story.

That’s why we worked with Cebr to develop the Investment Potential Index (IPI). By capturing key aspects of localised economic performance, the IPI measures investment potential across the UK, helping to better inform better decisions for businesses looking to grow.

The IPI is essential reading for C-suite decision-makers, adding a valuable new resource to the toolkit available for innovative businesses when planning where to focus future growth.

Investment Potential Index
The Investment Potential Index (IPI) provides valuable insights for innovative companies considering new investment in the UK, helping decision-makers see beyond the status quo to reveal a place’s hidden potential.

Innovation investment opportunities

Britain’s economy has been stuck in a low growth cycle since the financial crisis of 2008. Government efforts to tackle this, from the Industrial Strategy to Levelling Up, have yet to change this narrative.

To unlock the potential of the UK economy, businesses need to invest strategically in innovation. And they need to know where to put that investment for the greatest returns. Too often, the UK’s North-South divide means businesses leave opportunities untapped.

To take just one striking example, one-third of all foreign direct investment (FDI) in the UK is focused on London. Our Investment Potential Index (IPI), in conjunction with Cebr, suggests there are opportunities to invest in other regions and still see significant return on investment.

The IPI reveals the areas of the country where investment has the highest potential to deliver returns and drive economic growth.

The IPI’s three pillars: supporting business investment

Find out how different areas and regions rate against the IPI’s three pillars – and where public sector support could be required to encourage enterprise, nurture skills or develop new infrastructure.

What is investment potential?

To unlock the greatest return, businesses must have a clear picture of the environment in which they are operating. Research and analysis are vital to identify and measure the factors which will most affect whether investment will deliver results.

The IPI looks at innovation capacity, worker capacity, and technological capacity, each itself determined by a range of economic indicators. The overall index score (out of 100) represents the region’s highest possible investment potential.

Not only can this analysis help to inform business decision-making, but it also throws a spotlight on where public sector support may be required to encourage enterprise, nurture skills or develop new infrastructure.

Where to invest in the UK: how the IPI uncovers locations ripe for innovation investment

Look beyond the status quo with the help of the IPI and discover investment opportunities in places ripe for innovation with maximised returns.

The IPI’s methodology shines a light on overlooked regions by considering three key pillars – Innovation Capacity, Worker Capacity and Technological Capacity – to calculate an overall index score representing the region’s investment potential.

Our research clearly shows that the pillars necessary to support successful investment are in place in many areas outside the capital and South East of England.

Whether it’s Scotland’s skilled workforce (reflected in its high Worker Capacity score), strong Innovation Capacity in the South West and North West, or the Technological Capacity in the East, there are locations ripe for investment across the UK.

Continued public sector investment addressing our three pillars should further boost the investment potential of places across the UK. Such support can be transformative, igniting growth and productivity through increased investment in the technological, innovation and workforce capacities identified in the IPI.

For businesses considering where to invest, the IPI can contribute to better informed investment decisions.

Contact us

If you want to be rewarded for investing in innovation in the UK then speak to the experts at ForrestBrown. We specialise in innovation incentives and helping R&D intensive SMEs and large companies make the most of their innovation through R&D tax relief and patent box relief.