This article was originally published in Conservative Home
We have some of the best Universities in the world and fantastic entrepreneurs who’ve built incredible companies. Why then does the worldbank predicted that Poland could surpass our per capita GDP in 2030? Why despite having all the ideas, are we not executing on them more effectively?
I reflect on my recent trip to our new American office of the start-up that I joined over four years ago. I am reminded of the incredible journey of innovation and growth that we've been on. As the first employee, my mission was to introduce farmers to our livestock app, a venture that began with only 7 farms onboard now has expanded to serve 4,500 businesses in the UK.
This British Agri-tech success story wasn't built just by me but with an exceptional team of 28. We achieved this by harnessing the power of private venture capital and government innovation funding to revolutionise livestock management, tracking millions of sheep and cattle now in three countries.
However, during my visit, it becomes evident that if we want more companies to compete on the global stage the UK must embrace innovation more effectively to maintain its global competitiveness. We need the regulatory machinery of the UK to adapt swiftly, draw lessons from global markets, and implement essential measures to foster a culture of innovation across various industries.
This became most apparent during my visit, where I witnessed the vastness of the American beef market, with 320 million consumers and 90 million beef cows, in contrast to the UK's 72 million citizens and 14 million cows. While British beef boasts a low carbon footprint and high welfare story, we face a challenge in terms of quality compared to the US. Since the 1970s, the USDA's beef grading system has provided consumers with a reliable indicator of quality, Prime, Choice, and Select, setting a global gold standard for beef products.
Despite voting to the EU 7 years ago we still have not ditched the EUROP grid which is how beef is graded, it rewards yield and weight rather than quality like America grades its beef. If we can't adopt this simple and potentially industry-changing reform, how can we expect to grasp all the benefits of our own, independent, regulatory framework in every industry? As the UK looks to strengthen global trade ties, with the recently signed Trans-Pacific Partnership amongst other trade deals, we must focus not only on the emotional story of our British manufacturing, food production, and our service sector but also on enhancing the innovation.
The need to adapt and innovate extends beyond the agricultural sector to all facets of British business. Notable investments, like Tata's commitment to build a four-billion-pound Gigafactory which will create 9,000 jobs in Somerset, provides a vote of confidence in British industry. However, we must not rest on our laurels. To thrive in a rapidly changing world, we need to foster a culture that encourages and supports innovation at all levels.
Legislation is too slow to embrace innovation
A critical aspect of embracing innovation is the timely adaptation of legislation to support emerging industries. While the UK has made strides in certain areas, such as becoming a global leader in offshore wind thanks to David Cameron's commitment to supporting the fledging industry through the introduction of the feed-in-tariff in the early 2010s. The pace of legislative changes and government support can still be too slow. To remain competitive and attractive to businesses, the UK should prioritise reducing the burden of corporation tax. By doing so, we can encourage companies to base their operations within the country, spurring innovation which will lead to economic growth and job creation.
We need more business brains in Parliament and Whitehall
Encouraging innovation also involves bridging the gap between the business sector and government roles. Facilitating smoother transitions for those in business with aspirations to use their talents for building revenue to become senior civil servants, government advisors, and even more importantly parliamentary candidates who would help infuse policymaking with practical knowledge and experience from diverse industries. Without making it easier and more attractive for entrepreneurs to become MPs, Britain will lag behind the curve in more informed and effective decision-making.
Support to bridge the export gap
Innovate UK has been successful in funding development within the UK, but it can do more to help companies de-risk the leap into global export. By providing additional support to navigate international markets, more UK tech companies can confidently explore global opportunities, bolstering the country's export potential and reputation for cutting-edge technology.
Releasing the breaks on our economy, reforming planning
We are hamstrung by ancient planning policy, areas like Cambridge, which are bursting with potential are constrained by a lack of lab space, meaning that if you have a great idea out of University it would be easier for you to go to America than establish your business here.
To combat this we need to implement an economic development test in the national planning framework. It would balance the impact on things Landscape Harm against the benefit to GDP and job creation. We need to simplify the process too, 142,000+ pages are required alone for the environmental impact assessment for new nuclear reactors, which is another example of how planning is stifling British innovation. By introducing this economic development test and reducing the evidence burden, local planning authorities can prioritise applications that demonstrate the potential for job creation and economic growth, fostering innovation in vital sectors.
Innovation is the key to maintaining the UK's global competitiveness and securing a thriving future. By learning from global markets, streamlining legislation, supporting business-to-government transitions, enhancing export support and simplifying the planning process, the UK can establish itself as a trailblazer in innovation across all industries. Embracing innovation in every aspect of British business will not only ensure economic growth and prosperity but also drive positive change and progress in a rapidly evolving world. Together, let us create a culture that nurtures and celebrates innovation, propelling the UK to new heights on the global stage.
