Why innovation matters for the UK’s future
The UK’s biggest, perhaps only, differentiating asset from other major economies is the quality of our research and innovation system, which by most metrics is, per capita, best in class, says Ian Chapman
Two days before the Budget, UK Research and Innovation (UKRI) hosted the Innovation for Growth Summit that gathered leaders from research, industry, business and politics at the Science Museum.
The two events brought into sharp focus the critical role that research and innovation must play in delivering the UK’s growth agenda for the benefit of people and communities across the country.
The UK’s biggest, perhaps only, differentiating asset from other major economies is the quality of our research and innovation system, which by most metrics is, per capita, best in class. We have four of the top 10 universities in the world, five of the top 30, 17 of the top 100 – so not just quality, but depth of quality. Some of our national research organisations are also globally unique. I cannot overstate what a tremendous asset this is. But, to date, it is a somewhat latent, undervalued and underappreciated asset.
So how can we do more with this asset? How can we make the most of it?
Every £1 of public R&I spending generates on average around £8 of net benefit to the UK through the development of new and better goods, services and processes
Recent analysis showed every £1 of public R&I spending generates on average around £8 of net benefit to the UK through the development of new and better goods, services and processes, demonstrating that R&I investment can be an engine for growth, improving citizens’ lives and creating high value jobs and fast-growing businesses.
The government is responding by putting record investment into research and innovation to make it the heartbeat of national success. About half of the R&I budget is spent by government departments on projects directly within their remit. Of the remainder UKRI invests the majority, at around £10bn each year. Our responsibility is to ensure this investment delivers meaningful outcomes for the UK public.
Helping businesses scale
Through UKRI’s business-facing council – Innovate UK, led by serial tech entrepreneur Tom Adeyoola – we want the UK to be the world’s best place to start and scale breakthrough businesses – taking them on a journey from an innovative idea to an industry giant.
To support this ambition through to 2030, UKRI will spend £7bn to help UK businesses scale and commercialise cutting-edge technologies. This will include extending risk tolerant patient capital, (alongside private investment), enabling regulation and a smart approach to procurement.
Over the same period UKRI will invest £8bn in national priorities including clean energy, the creative industries and digital technology. This investment will be delivered through targeted programmes with clear outcomes, co-investment with industry, and utilising to the greatest extent all the cross-government levers at our disposal.
As well as being clear where our money goes and the sectors that we will support most strongly, we will also be more deliberate about precisely what we invest in within each sector. When helping companies to start and scale, we will be much more selective – thinking more as investors who not only assess the technical excellence of the proposition, but also its timeliness, the market opportunity, the competitive position of the UK, and the additionality of our pound.
There are many sectors where the UK has every opportunity to become or continue to be world leaders, such as quantum sensing, offshore wind, personalised medicine and battery technology, to name a few, and it is the big, bold, strategic bets we will pursue while protecting the curiosity-driven research that we know can lead to unforeseen breakthroughs.
I am a firm believer in the mantra that when you make choices, there are some losers, but when you don’t make choices, everyone loses.
As we seek above-average economic growth, our research and innovation base is a real asset that we need to exploit to its fullest.
Professor Sir Ian Chapman is chief executive of UK Research and Innovation