As part of our series of summer reading for policymakers, today I'm going to take a look at one of the key drivers for economic growth: innovation.
The UK has some real strengths in innovation. In particular, our scientific and early-stage research is top notch (for example, we outperform many of our main European competitors, including Germany, on international scientific research co-publications and the number of most-cited publications).
The Make it in Great Britain exhibition currently on at the science museum also showcases some excellent examples of British design, innovation and manufacturing which really highlight our ability to compete on the global stage.
However, there are some real challenges for innovation in the UK too.
Innovation accounted for 63% of productivity growth between 2000 and 2008: it is a key part of sustainable economic growth. But innovation spending is under strain. Back at the emergency budget government made a major commitment to protect the science budget. Do we need to see something similar for innovation?