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Innovation Strategy: Leading the Future by Creating It UK Innovation Strategy Leading the future by creating it July 2021 © Crown copyright 2021 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected]. Where we have identified any third-party copyright information you will need to obtain permission from the copyright holders concerned. Any enquiries regarding this publication should be sent to us at: [email protected] Contents Secretary of State’s Foreword _______________________________________________ 4 At a glance ______________________________________________________________ 6 Introduction: Why do we need an Innovation Strategy? ____________________________ 7 Building Back Better through innovation ______________________________________ 7 Implementing our innovation vision __________________________________________ 9 Part 1: Innovation today ___________________________________________________ 11 What is innovation? _____________________________________________________ 11 Why is innovation important? _____________________________________________ 11 The challenge: Innovation created the modern world, but progress is slowing ________ 13 The opportunity: The UK is ideally placed to lead a renewed global spirit of innovation. 15 Part 2: Innovation tomorrow – Learning from the pandemic to create the world’s best innovation ecosystem _____________________________________________________ 18 Innovation created the path out of the pandemic ______________________________ 18 We will base our plan to build back better on key lessons from COVID-19 __________ 19 Vision 2035: The UK as a global hub for innovation ____________________________ 21 Part 3: Achieving Vision 2035 _______________________________________________ 22 Pillar 1: Unleashing Business – We will fuel businesses who want to innovate _______ 22 Pillar 2: People – We will make the UK the most exciting place for innovation talent ___ 52 Pillar 3: Institutions & Places – We will ensure our research, development & innovation institutions serve the needs of businesses and places across the UK ______________ 66 Pillar 4: Missions & Technologies – We will stimulate innovation to tackle major challenges faced by the UK and the world and drive capability in key technologies. ____________ 80 Part 4: Achieving our ambitions – implementation and next steps __________________ 101 The government’s future innovation work programme _________________________ 102 Our full list of actions: __________________________________________________ 104 Annexes ______________________________________________________________ 108 Annex A: Innovation Institutions __________________________________________ 108 Annex B: List of Stakeholders Consulted ___________________________________ 114 3 UK Innovation Strategy: Leading the future by creating it Secretary of State’s Foreword The Rt Hon Kwasi Kwarteng MP, Secretary of State at the Department of Business, Energy and Industrial Strategy The UK, along with the rest of the world, has faced exceptional challenges over the past 18 months. Our society, our economy, and our livelihoods have all been affected. In recovering from the pandemic, we must build on this country’s innovative foundations to create a robust and agile economy that works for everyone and is fit for future generations. Investment in innovation will be critical to achieving this, and to building a greener, healthier and more prosperous future for the UK. Innovation is central to the largest challenges the world faces, from climate change and the ageing society to global pandemics. The UK must be in the vanguard of the response to these challenges. Now we have left the EU, we can move quickly to respond to these challenges, and other global opportunities, to cement the UK’s position as a world-leader in science, research and innovation. Furthermore, by supporting innovation in places, sectors, and businesses across the UK, we can level up the economy and create high-value new jobs and trading opportunities as we build back better. The UK can look back on a proud history of changing the world through innovation. From the industrial revolution to the vaccine development of the past year, the impact on our everyday lives is undeniable. We want to rekindle this flame in all UK citizens, helping them to seize the opportunities that the innovation economy will bring. The next decade will be one that features significant change. With the climate emergency and our net zero target – as well as the pace of technological innovation – the 2020s are a pivotal moment for the UK’s future prosperity. That is why Government has published “Build Back 4 UK Innovation Strategy: Leading the future by creating it Better: our plan for growth” which focuses on infrastructure, skills and innovation as the foundation of recovery and growth across the economy. To build on this foundation and seize this moment in history, this UK-wide Innovation Strategy sets out our long-term plan for delivering innovation-led growth. Its primary objective is to boost private sector investment across the whole of the UK, creating the right conditions for all businesses to innovate and giving them the confidence to do so. We will also show direct leadership and action – such as through new missions and backing technologies of the future – clearly signalling where the Government will focus in the future. The Prime Minister recently reiterated our objective of making the UK a global science superpower, turning world-leading science and ideas into solutions for the public good. The Innovation Strategy contributes to that goal with an ambitious programme of work spanning the innovation landscape setting out our vision for the UK to be a global hub for innovation. Our partners in the innovation system will be critical to delivering our ambitions, and I have asked Innovate UK and UKRI to operationalise this Strategy in order to achieve our shared objectives. We will work alongside other partners to do this, including universities and other research organisations, charities, research translation organisations such as Catapults, public sector research establishments and research and innovation institutes who will all play a key role in implementation of the Strategy. But most importantly of all this Strategy sends a message to businesses: make innovation central to everything you do and tell us what further steps we can take to help you to do so. Together, we will create the future. 5 UK Innovation Strategy: Leading the future by creating it At a glance The UK Innovation Strategy sets out the government’s vision to make the UK a global hub for innovation by 2035. Our Key Actions Pillar 1: Unleashing Business – We will fuel businesses who want to innovate. • Increase annual public investment on R&D to a record £22 billion. • Reduce complexity for innovative companies by developing an online finance and innovation hub between Innovate UK and the British Business Bank. • Invest £200 million through the British Business Bank’s Life Sciences Investment Programme to target the growth-stage funding gap faced by UK life science companies. • Consult on how regulation can ensure that the UK is well-placed to extract the best value from innovation. • Form a new Business Innovation Forum to drive implementation of this Strategy. Pillar 2: People – We will make the UK the most exciting place for innovation talent. • Introduce new High Potential Individual and Scale-up visa routes, and revitalise the Innovator route to attract and retain high-skilled, globally mobile innovation talent. • Support, through Help to Grow: Management, 30,000 senior managers of small and medium-sized firms to boost their business’ performance, resilience, and growth. Pillar 3: Institutions & Places – We will ensure our research, development and innovation institutions serve the needs of businesses and places across the UK. • Undertake an independent review, led by Nobel Laureate Professor Sir Paul Nurse, Director of the Francis Crick Institute, looking across the landscape of UK organisations undertaking all forms of research, development and innovation. • Allocate £127 million through the Strength in Places Fund to develop R&D capacity and support local growth across the UK. • Invest £25 million of funding to the Connecting Capability Fund to help drive economic growth through university-business innovation. Pillar 4: Missions & Technologies – We will stimulate innovation to tackle major challenges faced by the UK and the world and drive capability in key technologies. • Establish a new Innovation Missions programme to tackle some of the most significant issues confronting the UK and the world in the coming years. • Identify the key seven technology families that will transform our economy in the future. • Launch new Prosperity Partnerships to establish business-led research projects to develop transformational new technologies, with £59 million of industry, university and government investment. 6 UK Innovation Strategy: Leading the future by creating it Introduction: Why do we need an Innovation Strategy? “Some people see innovation as change, but we have never really seen it like that. It’s making things better.” Tim Cook, Apple CEO “Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may
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