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Innovation inspires UK productivity

A report has revealed that innovation has had a huge impact on UK labour productivity growth.

The government’s annual innovation report for 2009 claimed that innovation had accounted for two thirds of labour productivity increases between 2000 and 2007.The report, which attempts to identify trends and highlight strong and weak areas in innovation, discovered that most national indicator showed improvement.

Breaking down improvements, the reported found that investment in research and development businesses represented £25.4billion in 2006 and this increased by 5% in 2007.

It discovered that intangible investment in innovation by business, a key driver of innovation in the UK economy, in 2007 was estimated at £133billion.Tax credits given to research and development companies in 2007/08 totalled £790million. This amount continued to rise and grew by 13% between 2006 and 2007.

The number of students qualifying with a first-class degrees in science, technology, engineering, and maths fields increased by 4.2% between 2006/7 and 2007/8. It was also revealed that and UK Universities’ external income increased by 6.5% from 2006/07 to 2007/08 totalling £2.8 billion, which demonstrated the UK’s strong progress and the commercial benefits of the higher education sector.

Lord Drayson, minister science and innovation minister, said: “Our world class research base and successful university spinouts create the foundations we need to innovate and rebuild our economy for sustainable growth.“This report shows some encouraging signs. We must await next year’s report to better understand the impact of the recession, but we have already taken action.”The report also highlights the key role played by a number of partner organisations, including the Technology Strategy Board, the National Endowment for Science technology and the Arts and England’s Regional Development Agencies. These organisations play a vital role in delivering innovation support and promoting innovation across the UK in business, the public sector and the third sector.

A £950million Strategic Investment Fund has now been set-up to support a range of targeted investments across the UK economy to support growth and innovation. .A report has revealed that innovation has had a huge impact on UK labour productivity growth. 

The government’s annual innovation report for 2009 claimed that innovation had accounted for two thirds of labour productivity increases between 2000 and 2007. The report, which attempts to identify trends and highlight strong and weak areas in innovation, discovered that most national indicator showed improvement.  Breaking down improvements, the reported found that investment in research and development businesses represented £25.4billion in 2006 and this increased by 5% in 2007. 

It discovered that intangible investment in innovation by business, a key driver of innovation in the UK economy, in 2007 was estimated at £133billion. Tax credits given to research and development companies in 2007/08 totalled £790million. This amount continued to rise and grew by 13% between 2006 and 2007. The number of students qualifying with a first-class degrees in science, technology, engineering, and maths fields increased by 4.2% between 2006/7 and 2007/8.

It was also revealed that and UK Universities’ external income increased by 6.5% from 2006/07 to 2007/08 totalling £2.8 billion, which demonstrated the UK’s strong progress and the commercial benefits of the higher education sector. 

Lord Drayson, minister science and innovation minister, said: “Our world class research base and successful university spinouts create the foundations we need to innovate and rebuild our economy for sustainable growth.  “This report shows some encouraging signs. We must await next year’s report to better understand the impact of the recession, but we have already taken action.” 

The report also highlights the key role played by a number of partner organisations, including the Technology Strategy Board, the National Endowment for Science technology and the Arts and England’s Regional Development Agencies.   

These organisations play a vital role in delivering innovation support and promoting innovation across the UK in business, the public sector and the third sector.A £950million Strategic Investment Fund has now been set-up to support a range of targeted investments across the UK economy to support growth and innovation.

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