Industrial Strategy: Where next?
techUK sets out an analysis of the Industrial Strategy, its key strengths and weaknesses,
and its likelihood to succeed
The government has set out its vision of a ‘Modern Industrial Strategy’ - a lengthy white paper, and five of the eight accompanying sector plans.
With it has come a better understanding of what this government – closing in on its first anniversary – is trying to achieve, how it hopes to get there, and the way it looks at the world. As ever with Whitehall, it has introduced new jargon into the policy lexicon too – the so-called ‘IS-8’ high growth sectors. Based on an analysis that found that over the past 25 years, a third of the UK's industries were responsible for generating nearly two-thirds of productivity growth. With the IS-8 collectively representing approximately 32% of the UK economy, this one-third : two-thirds ratio is the guiding principle behind the government’s ‘picking winners’ strategy.
Our analysis finds notable strengths of the strategy, especially in its commitment to stability, clear and repeated prioritisation, a focus on scale-ups, commitments on R&D and commercialisation, welcome ambitions on pro-innovation regulation and further funding for skills.
Notably however, the strategy fails to deliver in two vital areas – energy relief for energyintensive technology businesses and digital infrastructure such as data centres, and an underwhelming offer on widespread technology adoption.
techUK and our members will continue to engage with the government on these important issues. In doing this, we welcome the government’s strong focus on the importance of our sector as a key enabler of growth and resilience across the economy.
The approach outlined in this strategy is indeed a significant shift in how the state seeks to interact with and support its most important, growth-driving sectors, one weighted towards greater partnership, collaboration and a shared vision. It might be language that we have heard before, but it is ultimately in the interests of both government and industry to try to make this a reality. A consensus on what needs to be done is a welcome first step – all effort must now be put into delivering this.
To understand the impact of the Industrial Strategy beyond the mere headline announcements, techUK has prepared the following analysis of the past, present, and future direction of the Strategy.
