Friday, 21 January 2011

We need more large multinationals

I make no apologies for quoting shamelessly from City a.m. editor Allister Heath's column from the 17th January. He in turn is reporting on a recent McKinsey report about the contribution to economic growth of large multinationals to the US economy; 23% of UK private-sector direct value add, 34% of private-sector value add if you include indirect value to their supply chain; 31% of growth in GDP since 1990; 41% growth in labour productivity over the same time period; 75% of private R&D spending; 50% of US exports; 33% of US imports.

The IPA, in its dealings with UK Government, particularly BIS and DCMS, has emphasised repeatedly the importance to the marketing services sector of encouraging big multinationals to make the UK their European HQ or their hub to the world outside of their immediate continent.

Our reputation globally relies on originating and managing international campaigns from the UK on behalf of multinational brands.
That's why we share Allister's worry that 'there are too few world-beating giant multi-nationals being created in the UK; and many existing ones are relocating their HQs for tax purposes out of Britain. Both these trends must be reversed.'

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