DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/152)
issued by The Government News Network on 28 August 2008
Government is
taking a fresh look at the changing global services industry and
how it can support innovation by British businesses.
The Government-sponsored 'Innovation in Services'
report published today outlines measures to improve the capacity
of businesses to innovate across a range of industries covering
retail, construction, logistics, internet services and
environmental services.
Business Minister Shriti Vadera said:
"The UK service economy is now worth £1 trillion. We are
world leaders in many service sectors including design
engineering, architecture and environmental consultancy.
"It is important to support innovation by British businesses
and that's why Government is working with the Technology
Strategy Board and the British Standards Institute to take forward
the report's recommendations."
Innovation Minister Ian Pearson said:
"The Innovation White Paper we published in March set out a
number of practical measures to make the UK the best place in the
world to run an innovative business, public service or
third-sector organisation.
"We are helping to create the conditions for innovation to
flourish throughout the economy, including the services sector.
Innovation is critical to the UK's future prosperity, our
quality of life and future job prospects."
Jonathan Kestenbaum, CEO of NESTA said:
"NESTA has highlighted the potential for innovation across
all sectors of the UK economy. We therefore welcome the
Government's commitment to helping the service sectors
increase their competitive edge in the global arena, and reach
their full economic potential."
The 'Supporting Innovation in Services' report is based
on a series of industry-led reviews of the retail, construction,
logistics, internet services and environmental service sectors. It
identifies service sector themes, barriers to growth - as well as
what the Government can do to support a thriving, competitive
service sector.
The report's key findings include:
* Finding: Where
Government is a key player in markets, business would like to see
a stronger role in championing innovation. Examples given by
industry include exploiting opportunities in waste minimisation;
the pricing of re-usable data; and government procurement.
Government response: Government is working with relevant bodies
such as the Technology Strategy Board to: promote innovation;
examine and take steps to address barriers to innovation; and take
forward delivery of agreed targets to improve innovation.
* Finding: Technology, particularly the internet, has transformed
the power of consumers. Innovative businesses have responded by
adapting their business models to meet customer expectations.
Government response: The Government has commissioned an
independent review by Francesco Caio looking at barriers to next
generation broadband networks in the UK, complementing
Ofcom's work in this area.
The Technology Strategy
Board's work recognises the importance of technology that
underpins knowledge-intensive services.
* Finding: Highly-skilled people are needed at all levels of a
business to develop innovative procedures that will increase its competitiveness.
Government response: The Business Support Simplification
Programme will streamline the support Government provides
businesses, including enhancing management expertise.
Train to Gain* has been expanded and to give a particular focus
on developing management and workforce skills in SMEs.
The
Learning and Skills Council is developing the concept of National
Skills Academies, which will cover innovative sectors.
* Finding: Internationally agreed standards would help innovative
and growing businesses to operate within a clearly defined framework.
Government response: Government will work with the British
Standards Institute (BSI) to develop a more strategic approach to
standards, particularly in areas such as logistics and the carbon footprint.
Notes to editors
1. The supporting industry research, commissioned by NESTA, is
available at http://www.nesta.org.uk/understanding-innovation/
2. The 'Supporting Innovation in Services' report is
the result of a joint initiative announced in summer 2007 by
Alistair Darling, then Secretary of State for Trade and Industry,
and Jonathan Kestenbaum Chief Executive Officer of NESTA, that
their organisations would work in partnership to look at how
Government might stimulate and support innovation in the services sectors.
3. The £1 trillion value on the service sector is a provisional
estimate for 2007 provided by ONS to Eurostat, and excludes the
Financial Services Intermediation Services (FISIM) adjustment.
4. The report is based on a consultation of business in five
sectors of the economy to develop a better understanding of what
is driving innovation in service sectors, how innovation is
developed and managed by leading businesses, the barriers to
innovation and the role Government might play in improving the UK
environment for innovation in services.
5. The 'Supporting Innovation in Services' report
focuses on business innovation on services. It complements the
recent Public Services Industries Review, a review by Dr DeAnne
Julius, published by BERR in July 2008, which considered private
and third sector delivery of public services and considered
addressed innovation in the context of the public sector. http://www.berr.gov.uk/files/file46965.pdf
6. The White Paper "Innovation Nation", published by
DIUS in March 2008, may be viewed at http://www.dius.gov.uk/publications/innovation-nation.html
7. NESTA has partnered BERR on the Innovation in Services
project. NESTA is the largest single UK endowment devoted
exclusively to supporting talent, innovation and creativity in the
UK. Its mission is to transform the UK's capacity for
innovation. It invests in early stage companies, inform innovation
policy and encourage a culture which supports innovation. http://www.nesta.org.uk/
8. *Train to Gain is a service offered by the Learning and Skills
Council. It provides impartial independent advice on training to
businesses. http://www.traintogain.gov.uk
9. The Department for Business Enterprise and Regulatory Reform
helps UK business succeed in an increasingly competitive world. It
promotes business growth and a strong enterprise economy, leads
the better regulation agenda and champions free and fair markets.
It is the shareholder in a number of Government-owned assets and
it works to secure, clean and competitively priced energy supplies
Department for Business, Enterprise & Regulatory
Reform
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