The CBI gives evidence to inquiry into the role of innovation in the UK’s COVID-19 recovery

Recent CBI reports such as Tech Tracker, and ongoing consultation with members, has provided the CBI with valuable insights into how firms have innovated during the COVID-19 crisis, as well as their main considerations regarding technology and innovation as we move towards a period of recovery.  

This committee session comes before the publication of the government’s Innovation Strategy this summer. It was a chance for the CBI to share the views of firms regarding: 

• The support needed from government to continue innovating
• Where government procurement policy can be improved
• How regions must play an important role in any future plans for growth.  

Key takeaways for business  

• Businesses have demonstrated incredible resilience through the pandemic, adopting new technologies and adapting their operations, sometimes in a matter of days. This appetite for innovation will be a critical factor in the UK’s path to recovery
• There is an opportunity for government to learn from the agility shown by innovation funding during the height of the pandemic, streamlining processes and making funding easier for businesses to access
• Our recent Tech Tracker highlighted that for 11% of businesses the one thing that would encourage them to innovate more was better navigation of the current support offered
• The CBI was pleased to see the central role innovation plays in the government’s new Plan for Growth. We are continuing to work with BEIS and Treasury to ensure the business voice is heard as we look towards the publication of the Innovation Strategy in June
• R&D tax credits provide the UK with a mechanism to be internationally competitive and capture investment. Increased compliance burdens and complexity, however, is a source of concern. To be effective, it will be important that the scope of the credits keeps up with the changing nature of R&D, including around the uses of data or cloud activity. The CBI is responding to the current open consultation
• The government's enormous buying power is a significant lever that is not being effectively used to drive greater innovation. Research shows that only 5% of businesses felt that public procurement currently incentivised innovation. There are opportunities as outlined in the Procurement Green Paper, however, to streamline procurement processes, placing a greater emphasis on social value, and improving dialogue between government and business. The CBI takes a keen interest in this issue and continues to consult members on where improvements can be made
• The upcoming Innovation Strategy and spending review are an opportunity to provide the UK with a long-term strategy and investment for innovation.