CBI: Government must take steps to drive SME business innovation
Summary
The CBI said that this failure to adopt and diffuse innovation throughout the economy has contributed to the UK’s relatively low productivity levels and has made it more challenging for some firms to adapt to changes brought about by the coronavirus. The CBI reported that compared to other European countries, the UK ranked 16th out of 36 in terms of the adoption of product or process innovation in small and mid-sized enterprises (SMEs). It suggested that distributed ledger technology (DLT) should top the list as the cutting-edge innovation most set to make an impact in the next five years, along with quantum computing and augmented/virtual reality (AR /VR). It urged policymakers to draw on the evidence and expertise of UK Research & Innovation, the Office for Science, and departmental chief scientific advisers to scan the horizon and identify the most important emerging technologies to target. When reforming policies, the CBI suggested that the government learn from international good practice, trial new approaches and be prepared to take risks with innovation funding.