The 2035 Industrial Strategy: From vision to impact (guest insight)
By Simone Boekelaar, Head of Horizon Scanning at Innovate UK
Imagine it’s 2035. The country is thriving. Living standards are high and opportunity and wealth are spread through every community. The workforce is increasingly high-skilled and proud because jobs are good quality and secure. Global trade flows freely and the country feels more prepared for, and resilient against, ‘shocks’.
This vision is the ambition of the Modern Industrial Strategy, published last week by the Department for Business and Trade.
The Industrial Strategy sets out a blueprint for renewal based on a dynamic economy that starts with shoring-up bright ideas and inventions so that they can start, scale and stay in the UK. Think increased business investment, reduced barriers, strengthened national supply chains and a spotlight on research and development.
It pictures a ‘rising tide’ where eight high-growth sectors lift people, businesses, communities and industries, reshaping the economy in a way that leads to gains in productivity and, in turn, our way of life.
Built on strong regional growth, cities and clusters will fill their economic potential with a focus on strategic sites, Local Growth Plans and strengthening connections between places.
Sectors will be poised to seize the opportunities of rapid technological advances in areas like clean energy, quantum and AI, backed by sector plans to transform these high potential, high growth sectors.
The snapshot is compelling: a fulfilled and skilled worker in a city regenerated by advanced manufacturing; a business leader scaling carbon solutions globally; an investor seeing returns from inclusive, clean growth. Let’s explore just how far we can go in the next decade: what’s probable, plausible and possible with the right winds.
Technology woven into everything
Technology can feel siloed in labs or seen as the stuff of early adopters. But the trajectory is accelerating rapidly. Over the next few years, AI integration will spread across all industries – from professional services to advanced manufacturing. Practical applications of quantum will be developed in labs, targeted at a plethora of challenges from drug discovery to logistics. Immersive technologies like AR and VR will transform education, training and remote collaboration – giving us more time for in person connection with people and activities that bring joy.
By 2035, technological advancement will have pushed the UK to 'leap forward a century' in scientific research, thanks to the rapid convergence of AI, robotics and lab-based science. Technologies which are today on the frontiers, will be as commonplace as smartphones today, woven into the fabric of daily business, powering everything from precision healthcare to sustainable manufacturing, from green biomaterials to floating offshore wind. The seemingly intractable coming ever closer into view.
This isn't about gadgets and headline-grabbing breakthroughs; it's about deep, systemic transformation and making every sector tech-ready, for human benefit.
The human touch
The UK's creative industries are already a global strength, but they're geographically concentrated and haven't fully leveraged cross-sector opportunities. This is changing fast.
By 2035, creativity and technology will be inseparable. 'Createch' will emerge as a distinct sector, blurring boundaries between art and technology, while strategic regional clusters build critical mass outside London. This will enable gaming, streaming, podcasts and synthetic media to continue to push boundaries into our next decade, while professional services will increasingly value creative thinking alongside analytical skills.
Human touch will remain essential for creativity, judgment and trust. Organisations and sectors that instinctively blend tech with human talent will lead the way, with business models evolved for efficiency, sustainability and resilience in a world where competition is fierce and change is relentless.
Sustainable infrastructure as engine for growth
The UK has momentum in renewable energy but faces challenges in industrial decarbonisation, grid resilience and supply chain vulnerabilities. The path forward is becoming clearer.
By the end of the middle of the next decade, the UK's energy system will be more resilient. Development of advanced nuclear will have progressed and together with green hydrogen will become genuine growth engines, while we retain our leadership position in offshore wind. The sector will be a showcase of digital transformation from analytics to smart grids and real-time monitoring, optimising everything and finally seeing buildings contribute to energy generation and storage.
By 2035, advanced manufacturing will be transformed – smarter, faster and more sustainable, creating new industries and bringing new jobs to the UK. Smart factories using robotics and digital twin simulations will make end-to-end automation a reality, while circular economy principles keep resources flowing, boost local economies and slash waste.
An innovation ecosystem built to scale
The UK has world-class research and a strong startup scene, but the journey from startup to scale-up remains challenging and innovation benefits are unevenly distributed. The foundations for change are being laid.
Over the next few years, the startup ecosystem will continue to grow in maturity to meet global challenges, while access to growth capital and international markets will improve. At the same time, regulatory frameworks are evolving from roadblocks to launchpads and barriers to participation are being systematically removed, opening doors for diverse talent and business models. The 'innovation ecosystem' will adopt startup-like energy—fast-moving, agile, outcome-focused and purpose-driven.
By 2035, companies of all sizes, in every region, will have the talent, infrastructure and capital they need to grow and compete. Regulation will feature world-leading, risk-based frameworks that encourage bold ideas while protecting society. The research sector will remain world-leading, delivering a constant pipeline of discovery met by systems designed to make those discoveries realities.
The challenges we must navigate
This ambitious vision could become reality if industry, policymakers, innovators and the wider innovation ecosystem come together with a shared purpose that maximizes impact everywhere. But integrating solutions across such a wide range of sectors and technologies is a colossal challenge. Security, integrity and a fair and equitable delivery of the strategy will demand constant vigilance – ensuring public trust along the journey.
And go!
The Industrial Strategy both builds on years of progress and resets the ambition. There's a role for everyone to play.
At Innovate UK, our role is to accelerate the UK's most promising research, products and services into commercial successes—stimulating productivity and growth for everyone to benefit. The prize of a sustainable, inclusive and resilient economy is for everyone.
Authors
Simone Boekelaar
Simone Boekelaar is the Head of Horizon Scanning at Innovate UK, the UK government’s innovation agency.