Over the past decade, the UK has repeatedly tried to establish itself as a ‘science superpower.’ Despite these efforts, economic growth has stagnated, and productivity has declined, partly due to the country's failure to fully harness its innovation economy.

The UK boasts a proud history of innovation and technological achievements but has lagged behind in investment compared to other leading markets. This has eroded confidence in the UK’s capability to sustain world-class research and development.

The recent election of a new Government presents a chance to rethink the UK's innovation strategy for the future. To unlock the full potential of Britain’s dynamic start-ups and innovative firms, the Government must tackle barriers across the innovation process. Ayming identifies three critical stages: nurturing innovation, incentivising it, and ultimately, rewarding it.

Key Recommendations:

• Long-term Strategy: The Government should review and recalibrate the national innovation strategy, demonstrating a genuine long-term commitment to bolster business confidence. This strategy must include experimental approaches that allow businesses to swiftly adapt to changing technologies and markets.
• Skills Development: The scope of the visa programme for highly skilled researchers and technical specialists should be extended. Additionally, domestic skills gaps in STEM education, vocational training, and apprenticeships must be addressed.
• Industrial Strategy & Decarbonisation: The UK’s industrial strategy needs a reboot to combat sluggish growth and productivity. Consider matching the investment levels seen in the US, EU, and other competitor markets, particularly in green industries.
• Alignment of UK and EU Carbon Markets: The Industrial Energy Transformation Fund should be extended, and proposed reforms should be implemented to unlock pension fund investments and growth funds for innovative companies.
• Priority Areas: Special focus should be given to high-value manufacturing, cleantech, and health & wellbeing sectors.
• Commitment to R&D Tax Relief: Confidence in R&D tax relief should be reinforced to maintain the incentive for ongoing investment. This includes providing promised additional resources to HMRC and consulting on an advisory board to foster business collaboration.

Mark Smith, Managing Director of Ayming UK says: “Last week’s election offers the UK an overdue opportunity to reassess its approach to innovation. For more than a decade, aspirations of making the UK the “next Silicon Valley” or an international “science superpower” have not been achieved due to a lack of understanding by ministers, who have pushed policy through without the necessary data on actual R&D intensity or a comprehension of the impact on smaller businesses. What British businesses need now is a long-term strategy for growth that encompasses every phase of the innovation cycle. It is essential that the Government views each of these components as integral stages within one singular innovation process in order to see the shift required to reboot the UK’s growth.

He adds: “Our recommendations have been pulled together by experts operating across the country’s key innovating sectors, and therefore reflect the very real needs of businesses. We urge our new Prime Minister to consider these recommendations as the Government begins to formulate its industrial strategy.”