Newport has been identified as one of the UK places making strongest strides in productivity — yet researchers say the city’s future depends on better connecting existing assets rather than finding new ones. A report produced by The Productivity Institute, in partnership with Newport Council, sets out a place-based investment approach designed to strengthen the city’s economic prospects.
Strong growth, but not evenly shared
The analysis notes that since 2008 Newport’s productivity growth has been almost double the Welsh average, driven by specialisms in advanced manufacturing, semiconductors, clean energy and digital technology. However, the study also flags a cluster of persistent problems — including a skills gap, relatively poor health outcomes and shortcomings in local infrastructure — that may prevent the city from fully converting strengths into broader prosperity.
Rather than focusing only on narrow economic indicators, the research uses a seven-part framework of "capitals" to assess what supports productivity in place. These capitals include traditional financial measures and also less visible assets such as trust between institutions and local pride.
| Seven capitals | What they capture |
|---|---|
| Financial | Investment and funding flows |
| Physical | Infrastructure, land and buildings |
| Human | Skills, health and workforce |
| Social | Community networks and civic pride |
| Institutional | Collaboration between public, private and voluntary sectors |
| Intangible | Reputation, innovation capacity |
| Natural | Green and environmental assets |
Evidence from data and people
Because some forms of capital are difficult to quantify, the researchers combined statistical evidence with qualitative material gathered from workshops and interviews involving stakeholders across Newport’s public, private and voluntary sectors. Those conversations were used to understand how people who live and work in the city perceive its assets and barriers — a perspective the authors say is essential to shaping effective local strategy.
The report concludes that Newport does not lack assets or potential. Instead, its central challenge is to do a better job of linking strengths across sectors and areas of policy so that local companies and residents both feel the benefit of growth.
- Cluster development: The review suggests deepening sectoral clusters, notably in semiconductors, fintech and advanced manufacture, to boost innovation ecosystems.
- Skills and retention: Improving training, local recruitment and career pathways to keep talent in Newport.
- Infrastructure and health: Targeted investment in transport, digital connectivity and public health to remove constraints on productivity.
What this means for Newport
For residents, the findings imply that future economic gains will depend on co-ordinated local action as much as on attracting new inward investment. For businesses, the report underlines opportunities to build on existing clusters and to work with educational institutions and the council to close skills gaps. For policymakers, the capitals approach offers a broader set of levers — beyond grants or tax incentives — to shape a sustainable local economy.
Local leaders have already taken steps to promote sectors such as clean energy and digital tech, and the Productivity Institute’s work is intended to support the council in turning those sectoral strengths into a coherent investment strategy. The emphasis on collaboration across public, private and voluntary bodies reflects a belief that institutional and social relationships are central to translating assets into lasting prosperity.
As Newport seeks to make the most of its recent outperformance, the report’s message is clear: the city’s long-term success will depend on connecting and building on what it already has, aligning skills provision, infrastructure investment and business support so that growth benefits communities across the city.
