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Today the Science, Innovation and Technology Committee have published the report, Flying Blind: Innovation, Growth and the Regions.

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Simply pouring money into the existing innovation ecosystem is not enough to facilitate economic growth, MPs warn today. A new report from the Science, Innovation and Technology Committee urges the Government to take a more rigorous, data-driven approach to assess innovation policy. This approach would ensure public funds encourage the development of regional innovation clusters and stimulate private investment. 

Innovation sits at the heart of the Government’s mission for economic growth. Its prioritisation of R&D spending, and its “unashamedly place-based” Industrial Strategy offers an opportunity to deliver innovation-led regional growth- a priority that successive Governments have pursued unsuccessfully. 

However, the report finds “major shortfalls” in the availability and sharing of innovation data, particularly regional data. Without clear metrics and measurements regarding investment, outputs and local impact, it is “impossible” for the Government and UKRI to evaluate existing policies, identify improvements and ensure money is allocated in a targeted way to drive regional growth.  

While the committee welcomes the Government’s agreement to publish departmental R&D spending plans and outturn data, to remedy this lack of data it recommends that these include regional and cluster-level breakdowns. The report also calls for the government and UKRI to publish annual reports on how public R&D supports regional innovation, and for UKRI to develop measurable, consistent performance metrics rather than high-level objectives.  

The report finds that untapped potential for innovation-driven activity through the UK’s geographic cluster system can only be unlocked with a more data-driven approach. This is because clusters emerge through sustained investment, infrastructure and skills concentration, which is only possible through a rigorous and data-led approach to policy and funding.  

The government should therefore make the mapping, monitoring and support of clusters a core pillar of its Industrial Strategy, establishing a national framework for cluster development and publishing annual performance data.  

The committee also highlights barriers to accessing public R&D funding that face innovators outside traditional hotspots. To support regional innovators more effectively, the government should establish a portal matching innovators to funding and Innovate UK should set clear targets and metrics for increasing engagement across the UK. 

Further data gaps exist regarding the commercialisation of innovations, in areas such as university spinouts which are key to ensuring the UK’s research base contributes to economic growth. To remedy this, the government should accelerate delivery of its University Spinout Dashboard, ensuring it includes standardised data on metrics such as institutional support and regional outcomes.  

Chair comment

Dame Chi Onwurah, Chair of the Science, Innovation and Technology Committee, said:  

“Successive governments have spoken about levelling up and more widespread R&D distribution, but this has never quite materialised. The UK's innovation landscape is incredibly well-placed to help deliver economic growth on a national and regional level, with some of the most successful university laboratories in the world and a brilliant tech ecosystem. 

“Placing innovation at the centre of the Government’s growth mission is a welcome first step to delivering much-needed economic growth. However, without the right data, how can we know whether innovation policies are working, whether public money is being directed to the right places, and how much private investment it is generating? Clear and transparent metrics are essential to track investment, outputs and outcomes.  

“The UK is flying blind when it comes to innovation policy. At a time where economic growth is urgently needed across the country and a new approach to R&D funding is being rolled out, the Government and UKRI must be guided by data to make evidence-based policy that reflects regional strengths.”