Scottish Government

Mark Hart ^*, Nigel Driffield ^**, Stephen Roper ^*** and Kevin Mole ^***
*Kingston University ^**Aston University ^***University of Warwick

Scottish Executive Social Research
2008

ISBN 978 0 7559 7042 1 (Web only publication)

This document is also available in pdf format (776k)

CONTENTS

ACKNOWLEDGMENTS

EXECUTIVE SUMMARY
Introduction
Rationale for the RSA Scotland Scheme
The Evaluation Approach
Profile of RSA assisted businesses
Key Findings - RSA assistance and business performance
Key Findings - Cost Effectiveness of RSA Assistance
Key Findings - RSA Scheme Administration
Overall Assessment of the RSA Scheme

CHAPTER ONE BACKGROUND TO THE EVALUATION
Introduction
Evaluation methodology
Profile of RSA offers of assistance
Response rates and sample/population profiles
Structure of the report

CHAPTER TWO PROFILING RSA BENEFICIARIES
Introduction
Characteristics
Partners and directors
Strategic direction and management
Markets and local linkages
R&D and innovation
Business growth
GVA comparisons
Summary

CHAPTER THREE ESTIMATING THE BUSINESS LEVEL IMPACT OF RSA FINANCIAL ASSISTANCE
Introduction: the fundamental econometric problem
Addressing the problem of selection or endogeneity
Limitations and alternatives
Timing of effects: some issues
The probit estimates
The employment growth equation results
Capturing safeguarded jobs in the model: sensitivity analysis
Summary

CHAPTER FOUR THE EFFECTIVENESS OF RSA FINANCIAL ASSISTANCE IN GENERATING EMPLOYMENT GROWTH
Introduction
The modelling approach
Deriving cost-per-job estimates
Estimating RSA scheme value added and value for money
Displacement issues
Summary

CHAPTER FIVE MOTIVATIONS FOR SEEKING RSA ASSISTANCE, EFFECTS AND ADDITIONALITY
Introduction
Motivations for seeking assistance
Effects of RSA on business behaviour
Additionality
Timing of effects
Summary

CHAPTER SIX RSA CASE STUDIES
Introduction
Selection of case studies
RSA scheme administrative issues
Scheme conditions
Additionality of assistance
Displacement issues
Effects of RSA assistance on the business
Capacity
Wider benefits of RSA assistance
Summary

CHAPTER SEVEN CONCLUSIONS
Introduction
How effective is the RSA scheme in Scotland
Summary - overall assessment of the RSA Scheme in Scotland

REFERENCES

APPENDIX 1 IN-SCOPE SAMPLE FRAME FOR RSA SCHEME: THE ATTRITION PROCESS
APPENDIX 2 MODELLING ISSUES - CHAPTER 3
APPENDIX 3 RSA CASE STUDY TOPIC GUIDE
APPENDIX 4 SUMMARY OF EVIDENCE ON THE EFFECTS OF REGIONAL AND INDUSTRIAL POLICY

It should be noted that since this research was commissioned a new Scottish Government has been formed, which means that the report reflects commitments and strategic objectives conceived under the previous administration. The policies, strategies, objectives and commitments referred to in this report should not therefore be treated as current Government policy.