The Role of Behavioural Science in Promoting Productivity and Innovation in Regional and Local Government
This report investigates the role of behavioural science and nudging in promoting productivity and fostering innovative practices within the context of the UK’s ‘Levelling Up’ local and regional economic development agenda. A literature review is conducted to this end. This report finds positive evidence for using behavioural science in promoting productivity, mixed evidence in fostering innovation, and positive evidence in promoting adoption of innovative practices and technologies. However, in all instances, the efficacy of these interventions seems enhanced by, or contingent upon, the use of non-behavioural policy tools, such as financial incentives. Furthermore, in some contexts, behavioural interventions appear sub-optimal compared to financial incentives in fostering productivity and innovation. Therefore, the central recommendation of this report is that behavioural science appears to offer some benefits for policymakers and businesses in conjunction with traditional approaches.