Analyzing the Relationship Between Innovation and Value Added Manufacturing: The Implications for UK Science and Industrial Policy

Abstract

In March 2023, former UK Prime Minister Rishi Sunak and former Technology Secretary Michelle Donelan announced a new strategy to affirm the country’s spot as a “Science and Technology Superpower” by 2030. The strategy was associated with around £500 million of government funding. Furthermore, in November 2023 the UK Treasury announced £4.5 billion in funding for the country’s manufacturing sector as part of the country’s new “Advanced Manufacturing Plan”. Despite these initiatives, industry experts have argued that over the last ten years there has been a lack of effective UK industrial policy. Consequently, despite strong UK public investments in R&D, the commercial benefits of technology development are increasingly occurring in other countries (IPPR, 2023). As the new Starmer led Labour government invites discussion on its proposed industrial strategy through the Invest 2035 green paper (GOV.UK, 2024), it is a critical moment to examine the relationship between innovation and industry in the UK.