UK innovation spotlight
The "Trend Chart on Innovation in Europe" is a major operation of the European Commission (DG Enterprise). It offers services primarily to innovation policy-makers and scheme managers in Europe. The Trend Chart includes, among other tools, the "European Innovation Scoreboard" and a database of policy measures in Europe. Regular "country reports" provide background information on innovation policy developments in the Member States. The most recent UK report starts by pointing out that at the time of itspreparation (April 2001), the UK government 'has made no major shifts in itsinnovation policy', preferring instead to follow the framework it set out inits competitiveness white paper in 1998, which was followed up by the science and innovation white paper in 2000. One of the major policy developments in this period was the joint publication of a white paper on enterprise, skills and innovation called 'opportunity for all in a world of change' by the UK government's department of trade and industry and department for education and employment. This identifies the government's next steps towards nurturing new industries, closing the skills gap and raising GDP (gross domestic product) in the English regions. In research, the government plans to launch an independent study into the provision of skilled researchers, which will be presented in 2002. It is also embarking on a drive to encourage more overseas scientists, scientific entrepreneurs and engineers to the UK, with a specific emphasis on entrepreneurs in the high tech sector. Further links are also being encouraged between research and innovation in public sector establishments. These include the publication of new intellectual property (IP) guidelines along with funds to commercialise IP, enabling civil servants to exploit their work commercially and consultation has already begun on how best to define a framework for management of intellectual property in universities. There is also a survey looking into the university-business interactions, looking to identify means of improving this interface. The UK government still places a high importance on start up technology-based companies and has launched the new small business research initiative (SBRI) to assist. The initiative will see government departments and research councils open up procurement programmes to small firms. These same small firms have also had their tax relief for spending on research and development increased from 100 per cent to 150 per cent. In terms of getting small companies started up, venture capital is an area where the UK compares well with its European counterparts, if seed, start up and expansion venture capital are combined. But there remain gaps for investment of less than £500,000 (around 800,000 euro), which the government is planning to address with the creation of regional venture capital funds and the UK high technology fund. A number of figures contained within the report show that the information on the UK is not black and white. Many of the figures require caveats to give the full picture. So it is that while the business level of spending on R&D in the UK compares favourably with European counterparts in the services sector, it is less so in the manufacturing sector. There is also a lower level of filing for patents in the UK than in countries like France and Germany, but this could be explained by a lower use of patenting in preference to incremental improvements on previous inventions. UK companies appear to have less revenue from new innovative products and services, but again, this could be explained by a deliberate heavier reliance on revenue from older ones. Over half of UK firms described themselves as innovative, but the UK average of innovative firms actually falls below the EU average. Information exists showing that the UK is relatively risk averse, but nonetheless has a high level of fast growing firms and has a higher level than average of 'angel' investment in new start-ups. The report concludes that the main elements of the white papers on competitiveness in 1998 and science and innovation in 2000 will be the keys to the UK's innovation policy. The main aims of these are to see investment modernise the science and engineering base, promote the commercialisation of university research, provide assistance for small businesses, initiate a new round of the Foresight programme, see an increase in the department of trade and industry's innovation budget, provide assistance to firms in dealing with market systems failures, stimulate the development of clusters, support the diffusion of best practice in business and industry and provide measures aimed at improving the competitive environment.