The UK government must commit itself to spending more on research and development, said business organisation CBI, which provides a voice for firms to policy makers.
Evolving innovations, new technologies and developing expertise can help tackle many of today’s greatest challenges, while delivering more jobs and prosperity across the UK, they said.
A new report from the CBI calls for a commitment to spending 3% of GDP on R&D by 2025 – a joint target to be met by the private sector and government. UK innovation spending is currently at 1.7% of GDP, well below the spending of many international rivals.
Tom Thackray, CBI Innovation Director, said:
“UK innovation has some great strengths – including groundbreaking research at our universities – but we need to get better at turning these into final products.”
“For years, the UK has under-invested and this country’s spending on R and D has stagnated as more countries race ahead.”
The UK’s spending on R and D has stagnated as more countries race ahead.
The CBI has also called for a move to ensure regulations are fit-for-purpose in sectors where disruptive firms and technologies are situated, to provide greater clarity for start-ups and offer a level playing field.
They further asked that the government work with partners across the UK to ensure that the new Industrial Strategy Challenge Fund complements existing initiatives and meets the needs of firms on the ground.
“With Article 50 just around the corner and international competition catching us up, now is the time for firms to get innovating and get ahead,” said Thackray.
“The government must start thinking what our economy needs to look like in the years ahead and set us on the road to higher spending in R&D.”