Innovation Europe > News > Innovation EU Vol2-1 > Innovation United Kingdom

The UK economy is currently facing a recession of exceptional severity. The government has introduced the Enterprise Finance Guarantee (EFG) measure to help businesses that otherwise would not be able to receive credit.

In addition, the Economic Challenge Investment Fund (ECIF) was launched in order to enable universities to provide tailored training, development and professional support to individuals and businesses.

However the government has announced a 2.4% cut (July 2009) in overall spending in the area of innovation, universities and skills and current UK departmental reorganisation is hindering the ability of government to respond to the recession.

The UK presents strong innovation performance according to the latest European Innovation Scoreboard’s 2008 Summary Innovation Index (EIS 2008). The UK’s good standing is due largely to excellent performance on lifelong learning and venture capital.

Although the UK presents strong innovation performance and ranks fifth on the summary innovation index (SII) out of 27 EU member states based on the European Innovation Scoreboard (EIS 2008), there are nevertheless several science and innovation areas where the UK shows rather weak performance and which constitute challenges to innovation policy.

Main innovation challenges

• Boosting relatively weak intensity of innovation activity in enterprises.
• Translating knowledge into “new to market products” and intellectual capital.
• Improving future skills needs.

Conclusion

The Technology Strategy Board (TSB) is leading a strategic programme worth €1.15bn in partnership with the Research Councils and RDAs, to support technology and boost innovation activities for the benefit of UK business. R&D Tax Credits have been increased in the rates of relief available for large companies and SMEs. Since 2003, over 1,600 businesses have claimed €150m.

The government is also developing Innovation Vouchers, whereby SMEs receive a voucher that can “buy” initial engagement with a knowledge-base institution such as a university. In addition, The Technology Strategy Board is expanding Knowledge Transfer Partnerships. The Small Business Research Initiative has been re-launched.

The reformed SBRI is being piloted in three areas: defence R&D, in collaboration with the Ministry of Defence; health, in collaboration with the National Health Services; and in building, in collaboration with the Homes and Communities Agency.

The UK government has introduced Learndirect and Science and Engineering Ambassadors Scheme. The government has plans for a National Enterprise Academy and School for Design Innovation and will expand the Train to Gain and the Apprenticeship programmes.

New Regional Science Learning Centres now deliver CPD courses to improve science teaching. Higher Education Institutions (HEIs), industry and scientific societies are increasing their outreach activities to schools and colleges in order to increase physical sciences and engineering participation in Higher Education.