TAILIEUCHUNG - COMPARATIVE ADVANTAGE AND GREEN BUSINESS

The UK has an internationally competitive design consultancy sector and a strong design education base. Nonetheless, survey evidence shows only 41 per cent of manufacturers and 6 per cent of businesses in trade and leisure services see design as integral to their business. Over half of UK firms say design has no role or only a limited role to play in their business. This suggests that there may be potential for greater links between the UK design sector and firms in other sectors. There are only limited measures of ‘creativity’ in the UK although various measures can be used to assess creative potential. The UK has a developed. | 25 June 2008 URN 08 1036 Comparative advantage and green business y Ernst YOUNG BERR Department for Business Enterprise Regulatory Reform Department for Business Enterprise Regulatory Reform Ernst Young LLP 1 More London Place London SE1 2AF Tel 020 7951 2000 Fax 020 7951 1345 uk Mr Brian Titley Director Department for Business Enterprise and Regulatory Reform 1 Victoria Street London SW1H 0ET 23 June 2008 Research project for the Department for Business Enterprise and Regulatory Reform Comparative Advantage and Green Business Dear Brian In accordance with the engagement letter dated 5th February 2008 we enclose our report in relation to the analysis of comparative advantage and green business . Our report focuses on the evidence on the potential business opportunities for the UK economy to move to a green or low carbon resource efficient economy. Scope of our work This scope sets out our understanding based on discussions with you of your objectives the issues that are relevant to those objectives and the work we have agreed to perform. These Services are based on your Terms of Reference dated 5th February 2008. In undertaking our work we have based our analysis and views on publicly available information information provided to us by the Department for Business Enterprise and Regulatory Reform BERR and our own information sources. The scope of our work has focused on four areas 1. Definition and characteristics of green businesses - we define what is meant by and propose a framework of analysis for green business. 2. Assessing the UK comparative advantage - we identify sectors in which the UK has comparative advantage through analysis of trade data and analysis of foreign direct investment flows. 3. Characteristics of successful green business models - informed by a selected number of case studies of successful green businesses or clusters regions we draw out what are the key success factors for green business. 4. Policy impact and unintended .

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