["Journal of Regional Science, EarlyView. ", "\nABSTRACT\nUsing two approaches, we contribute to sub‐national economic performance measurement by netting out the influence of a region's performance on its industries. The first approach measures performance using technical efficiency and involves introducing the first multilevel spatial stochastic frontier model. The second involves using the results from the first approach to introduce a dynamic multilevel spatial TFP growth decomposition. Using panel data, we apply the approaches to a production frontier for the eight industries nested in Great Britain's NUTS3 regions (2004\n−\n20 $2004-20$). The motivation is the well‐known UK productivity puzzle, which concerns a lack of definitive reasons why its post‐2008 productivity slowdown has been noticeably bigger than comparator countries. One suggested contributing factor are the regional economic performance differences within the country, where both our approaches provide clearer evidence on this by reporting estimates of net regional industry economic performance. For three of the eight industries (Construction; Distribution, hotels and restaurants; Other services), we observe negative mean own and spillover TFP growth, which is consistent with the country's productivity slowdown and its economy being service oriented.\n"]