Bridging Innovation Gaps for UK Business Growth
Innovation plays a crucial role in converting inventions into sustainable value, driving long-term growth, prosperity, and societal transformation. Focusing on supporting SMEs, especially scale-ups, is essential for economic impact and job creation. Challenges include overcoming the "Inventors Syndrome," addressing the "Scale-Up Gap," and establishing effective financial links for growth and sustainability.
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Presentation Transcript
Bridging the Innovation Gaps Growing UK businesses through better ecosystems and support Andrew Rylah Programme & Operations Manager Strategic Engagement & Partnerships, the IET
Innovation is Key Converts invention into sustainable value commercialised ideas: product / service / process to respond to challenges / market create competitive advantage, long-term growth & prosperity (local & national) bring high value jobs, transforms societies Increasing impact & spread disruptive / converging technologies, Industry 4.0, knowledge economies, short product lifecycles
Company / Technology Scale-Ups Av. annual growth (employees / turnover) > 20% pa for 3 years Only 35K scale-ups (esp E&T) but high productivity High impact on economy if grow into corporates
Innovation Challenges Growing range of govt & private initiatives Good track record at start-up; less for scale-ups IET 2018 survey: 333 E&T SME respondents & 4 round tables: What will drive up the number & range of successful SMEs? What are the barriers to SME growth?
1. Inventors Syndrome Belief: perfected technology = market success Clarity over business pathway Yes - Engineering prowess; business & marketing acumen also essential Realistic commercial value Time in development v market understanding Fit for purpose v Over-engineering
2. Scale-Up Gap Clusters of operational excellence No comprehensive, systemic landscape of support to meets needs Lack of awareness of support Access Talent Networks Markets Relocate / risk of takeover at a discount to potential
3. Financial Disconnect Effective links between finance & early stage technology development Less so at Scale Up level to reach those with best growth prospects Culture: ROI timescales; from working concept to sustainable sales
Ecosystems for E&T SME growth Availability & development of talent: UK & abroad Skills / attract applicants / bureaucracy / min salary Business training & knowledge beyond STEM Peer-to-peer business mentoring Relevant, recent expertise, consistency, trust, cost Showcasing best practice innovation Value, learning, comms Extend local networks & wider links technologies, supply chains, development stage
Support that delivers Financial liquidity: angels, VC, debt, loans, grants, crowdfunding investment-ready opportunities - Stage of development / potential / competition / exit UK-wide patient capital; replace European funds Joined-up extension of incubators / accelerators for scale-up needs Local & national data set analysis (best targets) Raise profile of network support
The Route Forward Innovation journey for outcomes: aligned R&D, start-up, scale-up, stay ahead Clusters of excellence early stage research / start-up support Agree with RA Eng: significant areas for improvement esp later stages of R&D & SME growth much higher capacity for innovation Long-term govt priority for business-led innovation Local & national, strategic action plan Leverage co-ordinated cross-dept pipelines Commercialisation through collaboration: academia, SMEs, corporates, not-for-profits Convene access to (inter)national markets, procurement & smart finance Build on successful models Streamlined, capacity building initiatives. Timeframes / guidelines Agile support: as, when, where & how needed Relationship management Facilitate exchange of knowledge, people, ideas
