How to keep the momentum on our high growth industries

Before the Easter Break we were delighted to welcome Gareth Davies MP (the Exchequer Secretary to the Treasury [XST]) to the CBI to discuss how the UK can create the competitive environment for high growth businesses to thrive, building on our recent research. Joined by members big and small representing some of the most innovative high growth businesses in the UK, across life sciences, digital technology, green technology, and advanced manufacturing. We discussed the practical solutions the government could take to realise its aspiration “to make the UK the next Silicon Valley.”

The need for business-focussed regulation

The Pro-Innovation Regulation of Technologies Review was welcomed by members, but now the reports have been published, it is imperative that the recommendations are delivered and momentum continues. Members were buoyed that the XST stated that around 70% of the recommendations are progressing. However it was clear that members still feel pinch-points, from a duplication of regulation by different authorities that are creating costs, impeding growth, and delaying investment. To the lack of skills, leadership, and collaboration within regulators to deliver better regulation.  It was also noted how we needed to follow distinct pathways to maximise our post-EU freedoms. To either be a first mover where there are economic gains to being a pioneer in an industry of the future, or to ensure alignment with the EU to provide certainty and simplicity for businesses.

Investment structures that can grow our high growth businesses and maintain our international competitiveness

Members welcomed government initiatives such as the British Business Bank and the Mansion House Reforms. However there was a feeling that we need to build on our strengths, as international competitors were more keen to attract and nurture high growth businesses. This included ensuring our world-leading life sciences sector is still a magnet for Foreign Direct Investment and the government actively engaging on the international scene to lure investments. To enabling our transition to a knowledge-based economy by providing a standardised framework for Intellectual Property valuations. Focus also turned to how we can build on our world-leading startup eco-system to create more high growth scaleups, from creating the right incentives to grow big and attracting the best talent in a globally competitive environment.

We need to be more commercially minded with our national assets

We have world-leading national assets that could be better pointed towards commercialisation to maximise their potential. From our public data, which is largely behind closed doors and not open for businesses to utilise. To building on our excellent research capabilities to focus more on the ‘development’ side of R&D.

Clearly there is more to be done, but also an enthusiasm in government to listen and act. We’ll be bringing these recommendations together to form a policy playbook on the competitive environment needed for high growth businesses to thrive and work with government to adopt them. Do reach out to Kapila Perera if you have any questions on this work.