UK: Innovation policy and how to implement it

This paper carefully examines «Innovation
Nation» strategy accepted by British Government in 2008,
this strategy has become urgent during the years of recession.
Regional aspects and the methods of its realization, financing
the higher education, R&D, and the functioning of the science
parks and clusters are also highlighted in this work.
United Kingdom, Great Britain, innovation policy,
regional policy, technoparks, regional development agencies, spin-off
companies, start-ups, information technologies, innovation nation,
scientific parks, clusters
A country’s innovation policy and advanced implementation mechanisms
The country’s innovation policy and its advanced implementation mechanisms are one of the most promising ways of
The use of knowledge, know-how and high technology is one of the most promising ways to overcome the crisis and make a breakthrough in the international arena. The use of knowledge, advanced technology and highly skilled human resources is one of the most promising ways of ensuring the sustainability of national science.
The UK’s experience shows that it is possible to ensure stable development of the national science and economy, including through development of medium-sized enterprises.
It is particularly important for the development of small and medium-sized enterprises, which has a positive impact on the image of the country and its investment attractiveness and competitiveness.
Among the direct methods of implementing innovation policy in developed countries there are the following
Investment in the form of financing (e.g. targeted, object-oriented and problem-oriented), crediting, leasing, stock operations, planning and programming, as well as public entrepreneurship.
planning, programming and public undertakings. Public
innovation policy of a country is not, as a rule, a
Public innovation policies in a country are generally not a “pure” expression of one model or another, but a mix of policies with different emphases. Consequently, innovation policy is a priority area of the overall economic strategy in almost all countries.
of the overall economic strategy in almost all
innovation policy is a priority of general economic strategy in almost all advanced economies.
activity is stimulated through the complex use of
of various measures of macroeconomic, legal and organizational nature.
The UK has always been at the forefront
The UK has always been at the forefront when it comes to academic research and invention
The UK has always been at the forefront of academic research and invention, and the strategic aim has been to commercialize it. There has been a strong emphasis on basic research in universities which has become part of the country’s innovation system. The state has always played an important role and as a
catalyst of the process in terms of creating a favourable environment for
innovation. Since the mid-1990s, the government has paid special attention to the knowledge economy, issuing a series of White Papers that stressed the importance of
innovation and why the government needed to invest heavily in innovation and knowledge transfer in order to increase the country’s competitiveness on the global stage. These
documents outlined a range of sectors of national importance, such as advanced manufacturing, design and other high-profile manufacturing-related areas – nanotechnology, biotechnologyelectric vehicles, green technology, medicine and healthcare, new materials.
This article takes a closer look at the main areas of British innovation.
In this article, the focus and implementation of British innovation policy are explored in greater detail.
in detail on the main directions of British innovation policy and methods of implementation.
The main directions and strategies of British
innovation policy
Until the early 2000s, there was no dedicated centralized policy to stimulate innovation in the UK.
UK until the early 2000s there was no dedicated centralised policy to stimulate and develop innovation. In 2003, the UK Department of Trade and Industry
The UK Department of Trade and Industry published the government’s strategy for technological development, and in 2004 the Technology Strategy Board was established.
In 2004, the Technology Strategy Board was established to invest in and support the development and commercialization of new technologies.
It invests in the creation of new technologies and supports their development and commercialization. A relatively coherent innovation
Relatively coherent innovation strategy for long-term development of the UK was formulated only in 2008.
In the past, the main factor of innovation activity was generally considered to be investment in basic research, the results of which were subsequently commercialized in industry. This approach has also been supported by
In the past, the main driver of innovation was typically considered to be investment in basic research, the results of which were then commercialized in industry. In reality, however, as some economists point out.
In fact, as some economists point out, the innovation process has many
and its promotion is not only determined by
supply, but also demand. Fundamental scientific discoveries
are necessary for a long term innovation process, but
The path from the laboratory to the market is long, complex and uncertain. The Innovation Nation programme, published in 2008, noted the importance of an open innovation model,
in which organizations collaborate with, or benefit from, universities, other companies and suppliers.
It noted the value of an open innovation model in which organizations collaborate with, or benefit from the expertise of, universities and other companies. Consumers are also becoming agents of innovation –
either on their own, jointly with businesses or as co-producers of public services (12).
In connection with the application of this model, the main directions of state innovation policy in the UK at present are: optimisation of state
The guidelines for public funding of science and innovations, development of basic research and encouragement of innovative activity in the private sector by attracting foreign capital into the sphere of innovation (12).
innovation sphere (11).
Strategic plans of economic development in the UK are drawn up for a period of 15-20 years and represent a coherent, unifying and integrating mechanism of decision-making
It is a coherent, unifying and integrating decision-making mechanism in all areas of life. By defining long-term and medium-term priorities, strategic plans and programmes take into account the strengths and weaknesses of each particular region,
risks and dangers, external factors, and predetermine a system of
measures for their implementation, mechanisms for attracting extrabudgetary
mechanisms to mobilize extrabudgetary funds and principles for the allocation of resources. The strategic
plans shall not only serve as a basis for sustainability through the definition of comprehensive intermediate and final results, but also as a basis for financing. They also
the establishment of strategic partnerships with the participation of
the authorities, government agencies, civil society organisations and the private sector. For this purpose, a special unit, the Strategy Unit, has been created at Cabinet Office level.
The UK’s strategic planning system is now inextricably linked to the European Union’s programming system, the European Strategic Development Programme
2007-2013. The general strategic principles include
formation of forward-looking programs of structural investments
The general strategic principles are based on three main priorities: strengthening the attractiveness of EU member states, regions and cities.
EU member states, regions and cities and making them more accessible to business; guaranteeing the quality of services provided; and preserving the environmental potential (3).
Innovation policy, as discussed above, is a central feature of the strategic planning programmes of the British government and is seen as the main way of dealing with recession. This is seen as the main way of dealing with the recession.
are the introduction of scientific advances in production and other spheres of life
The main objectives are to foster scientific advances in manufacturing and other areas of life, and to encourage the development of small and medium-sized enterprises (SMEs) and job creation.
The main objectives are to promote the development of small and medium-sized enterprises (SMEs), job creation in high-tech and knowledge-intensive industries, and the expansion of international trade and investment.The promotion of innovation, entrepreneurship and the growth of the knowledge economy. Stimulating innovation, entrepreneurship and the growth of a knowledge economy,
research and renewal of equipment, information networks and communication technologies contributes to the creation of
quality jobs, provides employment growth and enables employees and companies to adapt to a rapidly changing environment, and increases investment in human capital.
The most effective in this area are science and technology parks.
technoparks, ‘technology corridors’, ‘technology clusters’, etc.. They create a favourable environment for the emergence and cultivation of new knowledge-intensive
They create an environment favouring the emergence and growth of new knowledge-based businesses and attraction of investment. They help to create a favourable environment for the emergence and cultivation of new knowledge-based businesses and attract investment.
environment and mechanisms for business development, the British government has provided, according to World Bank estimates, the lowest barriers to entrepreneurship among OECD countries. The UK was ranked in the top ten countries in the world (sixth out of
181 countries) for doing business in 2007, creating an additional 4.7 million new businesses within the country.
SMEs now make up 99% of total business
United Kingdom, account for 52% of trade and 60% of employment (5).
60% of employment in the country (5).
The UK government has been issuing annual reports on the implementation of its own innovation policy since 2009
against its competitors and has recently doubled its network of science attachés to look for good ideas abroad (9).
abroad (9). Nevertheless, according to the new political course
Conservative-liberal coalition that came to power after the
Nevertheless, according to the new political course of the conservative-liberal coalition that came to power after the 2010 parliamentary elections, the country needs to
For the sake of austerity, the country will have to seriously revise the structure and volume of public expenditure,
The government has already eliminated (or is in the process of eliminating) the budget for innovation policy. The government has already eliminated (or merged) a number of state committees providing services in health, business, education, etc., which played a significant role in the innovation process.
role in the innovation process.
According to C. Smith, Deputy Director of Science and Innovation Analysis at the Department for Business, Innovation and Skills, the share of spending on science in the UK’s latest budget has fallen by about
15%. The scientific community will have to decide how to deal with this. But there are also a number of priority sites on which the ministry continues to work. For example, it will continue to build a number of Technology and Innovation Centres, the first of which will be in the UK.
Innovation Centers), the first of which will work on advanced manufacturing technologies. The government has reserved the main role in supporting basic research and statistics prove that things are actually going quite well here.
are doing quite well indeed. Despite a population of just 60 million, the UK has the second highest number of scientific publications after the United States.
behind the US in terms of the number of scientific publications.
Another factor that has an impact on innovation is that the level of
and that the level of trust and mutual support in the business community is very high. And the amount of venture capital in the UK, which is quite modest by US standards.
the size of venture capital in the UK, which is quite modest by American standards,
than in other European countries. Many researchers point out that the main problem with the British innovation system is
is the commercialization of research. British scientists
and engineers have been successful in generating new patents, but it has been argued that in the UK itself all these advances
UK itself has not been exploited to the extent that it should. As David Baghurst,
the head of ISIS Innovation,
(an Oxford University company that seeks out innovations overseas), the development of the innovation system in the UK has largely been a spontaneous
process. “Such a problem is inherent in a democracy in which
government changes every three, five or seven years. The result is a lack of consistency in policymaking. The new
The other problem is that Britain continues to behave as if it is a huge country with unlimited resources and is grabbing at everything at once.
unlimited resources and grabbing at everything at once instead of
rather than concentrating on certain areas, which is why
the UK’s innovation system is somewhat worse than its counterparts in Singapore or China,” says Baghurst