Despite the government’s ambitious target of raising R&D investment to 2.4% of GDP by 2027, it is not expected to reach this level until 2053.
For UK business, the under provision of research and development funding threatens to stagnate growth at a time when the potential for the UK is immense.
So, in consultation with its members, the CBI has published a new report looking at how businesses are increasingly using data and new analytics tools to shape innovation. It includes case studies of firms that are flourishing from their use of data analysis, and also sets out the steps Britain must take to continue on its growth trajectory in this area.
Importantly, it issues four recommendations to government to support them - and prevent the expected shortfall from occurring:
- Act on its commitment to delivering the 2.4% target by publishing a roadmap and setting out a long-term trajectory for government R&D expenditure. (See the UK’s current progress on increasing research and development spending here.)
- Make it easier for businesses to navigate innovation support by creating a digital hub that clearly outlines the range of innovation support that businesses can access.
- Introduce new support to help businesses understand the potential value of their data and equip them with the tools to unlock this value.
- Deliver the world’s most competitive R&D tax credit by ensuring that it recognises the growing importance of data-driven R&D.
Now is not the time for the UK to get left behind. By embracing these recommendations, the UK can be at the forefront of harnessing the latest trends in innovation and remain a great place to do business.
The CBI’s innovation team will continue to work with the government and members to support the adoption of these recommendations. Members may wish to get involved further in this Campaign by participating on one of our member’s Working Groups.