Issue Brief - Innovation
The Issue
Although the
UK is a world leader in scientific and technological research, we lag behind global competitors when it comes to translating this research into commercially successful products and services.
EEF's Objectives
In recent years, the government has put increased effort into improving the environment for UK firms to innovate. This has included a substantial increase in science spending, the introduction and subsequent enhancement of Research and Development (R&D) tax credits and a refocusing of the government’s support for innovation, following the Lambert Review in 2003[i] of links between business and scientific institutions. All these strands have been drawn together in the government’s Ten Year Science and Innovation Framework.
Yet just as important as the research push – and a much more significant catalyst for business innovation – is the technology pull effect where industry and the research base respond to the demand by customers and markets for innovative products and services. Although this message has been taken on board in principal by government, the scope and scale of initiatives in this area has so far been relatively small and their impact has been limited.
Our research on innovation and other EEF work has highlighted a number of areas for improvement:
· the need to improve the number of people available to industry with good levels of attainment in science, technology, engineering and mathematics (STEM) subjects;
· raising the level and effectiveness of links between and other scientific institutions;
· making greater use of public procurement to stimulate innovation;
· helping to commercialise new ideas.
EEF’s key priorities for improving the environment for UK firms to innovate include,
- Introduce a ‘first engagement voucher’ scheme for business-university collaboration to encourage firms to make their own links with universities.
- Knowledge Transfer Partnerships should be made more suitable for all types of company and projects though a shorter duration mini-KTPs are made available to smaller firms.
- body should have the remit to take on high-risk projects requiring radical innovation and a budget matching the 20-25% of early stage development funding provided by the US federal government, by strengthening the Small Business Research Initiative scheme.
- Use an enhance Technology Strategy Board to upgrade the skills of public procurers. Staff seconded to the TSB should use their skills and experience to train government procurers in areas such as risk-management, commercial best practice, technical skills and how to recognise and understand long-term value.
- Procurement policy and guidance should be kept simple with a focus on value for money. The government should therefore develop and communicate a long-term procurement strategy that would enable procurers to understand and meet government demand over the long-run.
- The government should consolidate the fragmented support for commercialising new ideas into a nationally coordinated Proof of Concept programme. This support provides finance for emerging technologies and mentoring for companies to help them become investment-ready.