International business links

Exploring international business links

The North East is an internationally connected region with high levels of goods exports per head compared to the national average. However, the data available on the number of firms with international connections is limited. To explore this data area further we have worked with Glass AI to use Artificial intelligence to identify the proportion of firms in the region with international links.

Glass AI identified firms with international links in two ways. The first was by linking HMRC importer and exporter records to Companies House data. This provides a record for firms that are importing and exporting goods in the region. The second was to use natural language models to identify signs on companies’ websites that they have international links, including international staff, locations and mentions on their websites. 

The first chart below shows the proportion of firms in the North East region that show these international links compared to the Northern Powerhouse and England excluding London, as well as a comparison to the ONS annual business survey data. It shows a large proportion of North East firms have international links beyond just importing and exporting, but also that despite the North East having a high volume of exports the breadth of the importing and exporting base is smaller than other regions. This suggests that the region relies heavily on a few high value exporters.

The second chart shows the number of firms in the region that were identified as internationally connected by the different levels of evidence. It shows that many more firms have some international mention on their website than are involved in exporting and importing goods.
 

International links by firm characteristics

Across the North East region there are relatively small differences in the proportion of firms with international connections by local authority. Newcastle upon Tyne has notably higher proportion with open web identified links, but broadly this data demonstrates that firms across the region have international trading and other connections.

There are differences in the number of firms with international connections by the number of employees. As has been show elsewhere, larger firms are more likely to have international connections, highlighting how international connections support many of the region’s largest employers. 

Finally, there are also differences between sectors, with many of the region’s most strategically important sectors, such as chemicals, life sciences and the offshore industry being heavily involved in international trade.

Further data 

The data from our work with Glass AI can be explored further in a map format on the North East Evidence Hub here. You can also find additional pages on the North East Evidence Hub looking at trade in goods and services, survey based measures of the number of exporters in the region, and jobs created through international investment.