Measuring the economic impact of the British library

Assessing the British Library's contribution to the national economy is a complex matter, requiring consideration of a number of different dimensions. First, the value added by the Library takes many forms—economic, cultural, social and intellectual. Second, the British Library adds value both to those who use our products and services directly, and to the wider UK population who benefit indirectly from the Library's existence and the services it provides. Traditionally, attempts to assess these benefits have taken the form of qualitative case studies—telling good stories, but failing to provide a comprehensive evaluation. But now a technique supported by the Nobel Prize winning economists, Kenneth Arrow and Robert Solow, permits a coherent quantitative evaluation of the total benefit to the nation of publicly funded institutions and programmes. Recognising the value of this technique, the British Library commissioned a groundbreaking research study to estimate the impact of the Library on the UK economy. The study demonstrates that the Library generates value of around 4.4 times the level of its annual public funding of £83m. To the best of our knowledge, this study represents the first time the ‘Contingent Valuation’ technique has been used to derive a figure for the overall economic impact of a national or major research library.