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LM3 ONLINE
The LM3 tool was originated by nef (the new economics foundation). LM3 is now a Government-recognised tool for measuring economic impact, particularly for public procurement. LM3 has been and continues to be used by the public, private, and non-profit sectors. It is acknowledged to be one of the few robust ways to measure economic impact of sustainablity on communities.
LM3 was further developed by Adam Wilkinson to calculate an objective value of local authority spend on the local communities that they serve and has been adopted by the Centre of excellence for procurement in the North East and delivered throughout the region. The methodology has been further developed to make the model availble online. This improves response rates, greatly reduces costs and means that we can offer the model free to the not for profit sector.
The latest development is the use of the Gadget as a campaigning tool for socially responsible organisations.
This work demonstrates innovation, policy influence, policy into practice, and the use of IT for public good.
Now try the Gadget
Useful links:
Local: LM3 looks at a specific local economy or set of local economies. This stands in contrast to traditional multiplier analysis, which looks at larger areas, such as whole nations.
Multiplier: The multiplier is an economics concept used to denote how much a specific inflow of income into an area then circulates (or multiplies) in that area.
3: LM3 looks at three rounds of spending -- the original inflow, how that inflow is spent, and how that money is re-spent.
