UK Industrial Strategy: Analysis, gaps, and the path to growth | Martin Wood, Adrian La Porta and John Dyson

The discussion praises the strategy's long-term vision, focus on key sectors (advanced manufacturing, life sciences, digital), and systemic approach to economic issues. However, it examines the absence of a detailed 'industrialisation strategy,' highlighting gaps in integrating academia with industry, supporting early-stage investment, and overcoming cultural barriers to productivity. The conversation advocates for a clear national vision and enhanced collaboration across education, commerce, and finance to drive sustainable growth.

Click the 'play button' above to watch the episode, or read our 5 Key Takeaways from this episode below...

1. A Long-Term Strategy is Positive, But 'Industrialisation' is Missing:

While setting out a 10-year industrial strategy is seen as a positive step for stability and clarity, the document is an 'industrial strategy' but not truly an 'industrialisation strategy.' It identifies areas for growth but doesn't detail how the UK will achieve this transformation, particularly given existing capabilities and people.

2. Integration Gaps Hinder Progress: Education, Commerce, and Investment are Disconnected:

A fundamental issue is the lack of integration across key areas. This includes a disconnect between university education and industry needs (e.g., scientists understanding automation and vice versa), and a 'peculiar' investment environment in the UK where there's a significant gap in funding to take intellectual ideas to an investible stage.

3. Regional Silos and 'Primate City' Structure Impede Network Building:

Although the strategy discusses focusing on industrial clusters, there's a concern that these clusters might become siloed and compete rather than forming a connected network. The UK's 'primate city' structure, where investment gravitates towards London, also complicates the effective distribution of support and infrastructure for these regional hubs.

4. Addressing the Productivity Malaise Requires a Shift in Societal Mindset:

The UK suffers from a widely recognised lack of productivity, and a low uptake of AI and robotics in SMEs. There's a perceived 'malaise' where society needs to reappraise its relationship with work and effort relative to desired per capita income, moving beyond merely changing environmental conditions to actively fostering growth.

5. Compelling Vision and Clear Measures are Needed to Engage and Drive Change:

The strategy lacks a clear, compelling vision and visual representation of what the UK could be, making it difficult to engage a wider audience beyond policy circles. Establishing a single, understandable measure like GDP per person could provide a clear objective, showing how economic growth directly funds essential services like the NHS.

 

Watch Navigating the Energy Debate: Challenges and Solutions with Martin Wood, Adrian La Porta and John Dyson here