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From Research to Productivity: A Systems Analysis of UK Innovation Pathways

Cambridge Econometrics were commissioned by the British Academy and Campaign for Science and Engineering (CaSE) to carry out an independent systems-based analysis of the strength and weaknesses within the UK's innovation system to better understand how to turn research into tangible solutions for business growth and public good.  

Most existing research studies on the UK innovation system assesses parts of the innovation process but few studies look at the whole journey from research, to developing products, to getting those products used.  

In this study, Cambridge Econometrics teamed up with the Innovation & Research Caucus to fill this gap by analysing ten key technologies, including AI, mRNA vaccines, robotics and quantum tech to understand the UK's strengths and weaknesses in how it develops and uses these innovations.  

Innovation systems UK
From Research to Productivity: A Systems Analysis of UK Innovation Pathways

An independent systems-based analysis of the strength and weaknesses within the UK's innovation system.

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Key Findings

Results show weaknesses in the UK effectively commercialising its own research, innovation absorption challenges, and a misalignment between innovation focus and welfare.  

1

The UK struggles to effectively commercialise its own research.

2

The UK's low levels of innovation adoption not only have a direct negative productivity impact but also incentivise commercialisation.

3

There is a misalignment between innovation focus and welfare.

4

Too much value from the UK's research is captured elsewhere in the world.

Recommendations

With targeted policies focused on specific technologies, there are opportunities to capture the innovation value of the UK and move them from research into effective real-world use. 

Continue to fund foundational research and support spint-outs and start-ups, with more focus on supporting and retaining scale-ups to encourage their growth within the UK.

Focus on facilitating the simultaneous adoption and development of complementary technologies.

Tackle the specific barriers to technology adoption in different sectors.

Work backwards: use regulation and long-term procurement strategies to grow the market for technology adoption to make the UK a more attractive place to commercialise.

Consistent long-term focus on incentivising technological investment and innovation in sectors that provide the greatest level of social benefit. 

Capture more value in UK research within the UK's economy by applying a strategic framework for industrial strategy intervention. 

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Adam Brown

Head of UK Economic & Social Policy

t: +44 1223 533165

e:alb@camecon.com

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