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We published a which looks at the way the Â鶹ԼÅÄ stimulates growth through its own spending and how it can foster growth in other creative industries.ÌýÌý Due to its scale and reach and thanks to the licence fee, the Â鶹ԼÅÄ comes into contact with hundreds people and entities during the course of making programmes. As a result, a 'licence fee pound' spent by the Â鶹ԼÅÄ benefits many of those who contribute to the Â鶹ԼÅÄ’s supply chains. This in turn injects money into regional and local economies helping to sustain employment across the UK as the effect of initial Â鶹ԼÅÄ spending is multiplied as it ripples through the economy.

As the report shows the licence fee creates an economic benefit which stretches far and wide and delivers real value to digital and creative businesses across the UK. In total during 2011/12 Â鶹ԼÅÄ spending generated over £8 billion of economic value and at least two pounds of economic value continued to be generated by every pound of the licence fee. Furthermore these benefits of Â鶹ԼÅÄ spending are being spread across the country, consistent with the Â鶹ԼÅÄ’s strategy of moving production out of London.

But is it not only the level of spending that creates economic value. Importantly the way that we spend the licence fee, and what we spend it on, can encourage growth. While some argue that the Â鶹ԼÅÄ’s scale crowds out private sector activity, in fact scale can be beneficial. The Â鶹ԼÅÄ’s purchasing power increases demand within certain sectors, allowing firms to expand and benefit from economies of scale themselves.Ìý

(The wider benefit of the licence fee provides an extra reason for Ìýto think again before it implements a Ìýspectrum tax next year: a levy on the spectrum broadcasters use to transmit their programmes. As well as hitting licence fee payers, such a tax would remove much-needed cash from the UK's creative sector.)

The Â鶹ԼÅÄ’s size and funding also encourages innovation of course, a key driver of growth. The Â鶹ԼÅÄ is an important innovator within the UK digital and creative sectors, not only in a technical sense but also more widely through the development of ‘knowledge assets’ including programmes and formats.

The Â鶹ԼÅÄ’s public service remit and commitment to invest on behalf of others in the creative sector means it is uniquely placed to promote knowledge sharing.

The report considers the different ways in which the Â鶹ԼÅÄ can use its knowledge and expertise to benefit others in the creative sectors and beyond.Ìý The Â鶹ԼÅÄ’s commitment to open standards, Â鶹ԼÅÄ training, investment in creative clustersÌý in Salford and in Roath Lock, our partnership activities and the way in which we interact with our suppliers all help to embed knowledge in the wider economy.

There are many good examples of how the Â鶹ԼÅÄ has helped to drive economic growth in the digital and creative industries by passing on the benefits of its innovations on to others. The work of , the Â鶹ԼÅÄ’s contribution to , the Â鶹ԼÅÄ’s role in Ìý and activities undertaken by Â鶹ԼÅÄ Worldwide have all helped Â鶹ԼÅÄ knowledge and expertise to permeate the economy.

The case studies in the report are only the tip of the iceberg.Ìý We might, for example, have focused on the role of the Â鶹ԼÅÄ in driving the adoption of new technologies, such as broadband.Ìý From launch, Â鶹ԼÅÄ Online played a significant role in getting people online, just as Â鶹ԼÅÄ iPlayer later helped familiarise use of online catch-up services.Ìý The enormous potential of the Â鶹ԼÅÄ’s efforts in this field plays to the argument by a growing number of policymakers in support of the economic benefits of broadband take-up and usage as well as infrastructure.

Looking ahead, we will be involved in several initiatives in 2013 which will cement the role of the Â鶹ԼÅÄ as a connector and catalyst for growth, such as the , Â鶹ԼÅÄ participation in the BIS-funded Ìýand a with University College London.

is available via the Inside the Â鶹ԼÅÄ website.

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John Tate is Director, Policy and Strategy