UK seen as lagging behind other nations, according a global report by GE, with 1 in 2 UK businesses claiming it is a poor environment for innovation
Ø This despite 93% believing innovation is the main lever for a more competitive UK economy, as well as the best way to create jobs (85%)
Ø Almost three quarters (71%) feel that increased innovation will translate into improved life conditions for UK citizens
Ø Only 9% of global respondents see the UK as a hotbed for innovation, with USA, Germany, Japan and China global leaders
London, January 18, 2012: The global economic crisis has had a significant impact upon innovation across the globe according to the latest GE Innovation Barometer, launched today. In the UK, businesses have become more risk averse during the downturn, especially as access to private and public funding has become more difficult and many have watched R&D spending decrease or disappear entirely.
The 2012 GE Innovation Barometer, which polls 2,800 businesses across 22 markets globally, found that UK companies see innovation as fundamental to the future health of the UK -- both economically and socially -- but that sufficient triggers are not in place to stimulate and encourage it. Businesses feel that a renewed sense of efficiency and intensity around innovation - particularly support for small businesses -- is needed to ensure the UK competes.
Commenting on the findings, GE UK CEO Mark Elborne said:
"The UK has a proud and distinguished tradition and reputation of innovation and invention and whilst we are still up there as a top 30 innovation champion, our research has uncovered some worrying trends. The reality is that we are facing difficult and uncertain economic pressures, but it is crucial to UK business and future growth that we do not continue to slide down the innovation league table. We have a lot of exciting talent in this country that can provide solutions to our most pressing technological questions."
Developing partnerships and collaboration with a combination of players is the key to success in innovation according to the poll (84%). The results of the Barometer make it clear that UK companies see collaboration as key to future growth - from government and big business to SMEs and individuals. Almost 9 out of 10 UK businesses claim that SMEs and individual entrepreneurs can be as innovative as bigger companies, reinforcing the need for funding and support for local innovations and ideas.
The UK has a unique heritage of successful innovation -- from Brunel to Dyson and beyond -- which demonstrates our ability to compete with the best in the world. In addition GE research in 2011 revealed that British engineering students felt very positively about their career prospects in the UK. It is the combination of this heritage and the passion of the next generation of innovators that needs to be harnessed. GE's Innovation Barometer demonstrates that more needs to be done to ensure this happens.
Mark Elborne continued:
"One of the big positives to come out of the Barometer findings is that young people in the UK overwhelmingly embrace innovation. From the iPod to social media, the so-called Generation Y are surrounded by technology and innovation and therefore experience the benefits. These young people are the future of innovation in the UK and it is therefore crucial that we harness their passion and enthusiasm and channel it appropriately."
The GE Innovation Barometer identified a number of initiatives that have worked well in other markets and could be adopted in Britain:
* Germany was named by many as an 'innovation champion', The government's robust innovation policy initiatives are regularly reviewed and renewed and the High Tech Strategy 2020 provides a clear vision for where they want to be in the fields of science, technology and innovation by the end of the decade.
* The U.S. has been a centre of innovation since the 1800s. Its reputation as the leading light in this area is the result of years of extensive collaboration between universities, government and corporations made possible by legislation allowing private and university control of federally-funded research projects.
* The Japanese government is committed to maintaining strong levels of funding for innovation, despite the recession, with a boost in R&D spending to over 4% of GDP.
Mark Elborne concluded:
"All of us have a part to play in creating the means for collaboration. Government with funding and support; big business by developing and funding projects, as well as creating partnerships and investing in R&D; and SMEs and individuals who continue to push the boundaries of existing technologies."
ENDS
Mark Maguire
GE
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