The United Kingdom is facing a significant challenge in harnessing technology to drive economic growth. A recent analysis by the Tony Blair Institute for Global Change emphasizes that while the government has prioritized innovation, a comprehensive system for technology diffusion is essential for businesses to effectively adopt productivity-enhancing technologies. This approach is crucial for revitalizing the economy after a challenging budget period.
Historically, the UK’s Industrial Revolution thrived not merely on inventions but on a robust network of institutions and support systems that translated ideas into practical applications. Notable figures like James Watt, who refined the steam engine, relied on entrepreneurs like Matthew Boulton to help turn innovations into productive realities. As the government looks to stimulate growth, this lesson from history remains relevant.
In its recent efforts, the UK government has made strides by committing to enhance AI infrastructure and research, aligning with its AI Opportunities Plan. However, despite these significant investments, many small and medium-sized enterprises (SMEs) find the adoption of new technologies to be daunting, often viewed as high-risk with uncertain returns. The Global Innovation Index ranks the UK sixth overall but highlights a concerning 37th place in “knowledge absorption,” indicating a lack of effective idea dissemination across businesses.
Countries such as Singapore and Germany have established dynamic diffusion systems that actively support businesses in adopting new technologies. Singapore’s SMEs Go Digital programme and Germany’s Mittelstand-Digital are prime examples of how targeted initiatives can facilitate technology integration. In contrast, the UK has reduced its investment in essential areas like workforce training and organizational development by half since the financial crisis.
Acquiring and integrating new technologies can be a complex and costly process for businesses. A well-structured diffusion system can alleviate this burden by streamlining the adoption process and reducing associated costs. Currently, British companies encounter a fragmented support mechanism that often fails to scale effectively, leading to a two-tier economy where a few frontier firms thrive while many others lag behind.
To address this disparity, the UK must modernize its technology diffusion ecosystem. This includes leveraging the expertise of its world-class universities, which already play a pivotal role in local economies. Establishing a national network of University Technology Adoption Centres could provide essential hands-on training, advice, and peer learning opportunities for smaller businesses. Both the Russell Group and Universities UK have expressed support for a more significant role in facilitating technology adoption.
In tandem with university initiatives, a digital “CTO-as-a-Service” model could offer a streamlined entry point for firms seeking assistance with technology integration. By employing modern technology, this system could deliver personalized support tailored to individual business needs while maintaining scalability across the broader ecosystem. Key components of this plan include a digital CTO platform for coordinated support, a business digital ID for targeted outreach, and an AI assistant to enhance the overall capacity of the support network.
The potential benefits of upgrading the UK’s technology diffusion system are substantial. According to the Tony Blair Institute, improving this system could contribute over £6 billion to the nation’s GDP within the current Parliament. This economic boost could rival other significant government reforms, such as planning initiatives, and would largely offset costs through increased tax revenues.
Beyond the financial implications, a robust diffusion system offers an opportunity for more equitable economic growth. By ensuring that new technologies reach underserved businesses and regions, the UK can work towards a more balanced and inclusive prosperity. A national strategy for technology diffusion would transform the government’s growth mission into a collaborative effort, emphasizing the importance of not just invention, but also the widespread sharing of innovations.
As the UK navigates its economic future, the focus must shift from solely inventing new technologies to fostering an environment where these innovations are accessible to all businesses.
