The UK must embrace a regional and grassroots approach to tech policy to unlock economic growth, a report has found.
The UK Tech Cluster Group (UKTCG), an organisation representing tech hubs from every nation and region, has called on the government to adopt “Four Big Ideas”.
They include improving tech talent pipelines across the UK, ensuring all businesses understand the opportunities from tech, localised innovation initiatives and tax credit incentives outside of the so-called ‘golden triangle’.
“UK-wide legislation and national programmes have a role to play,” the report noted. “But in the next parliament, we must better mobilise partnerships at the grassroots.”
To improve access to tech talent, the report recommends an apprenticeship levy for SMEs and improving engagement between people, industry and education.
It calls for cluster organisations – such as Tech WM and Leeds Digital – to take on a role similar to the one previously held by local enterprise partnerships growth hubs, a network of private and public sector support initiatives.
To maximise regional tech strengths, the government should create a UK innovation policy centred around partnerships with private sector firms, called ‘distributed innovation programmes’. Local tech cluster groups would promote existing national R&D initiatives under this arrangement.
The report – called ‘Ecosystems of Innovation’ – states that “place matters” and called for tax credit enhancements to incentivise tech growth outside of London, Oxford and Cambridge, which currently attract the lion’s share of UK tech investment.
The government should introduce an annual baseline report to monitor the progress of tech ecosystems across the UK, the report added.
UK tech ‘dominated’ by centralised policies
The findings, which were shared at a reception in Parliament on Tuesday, are intended to start the conversation and improve ties between regional tech hubs and Whitehall.
Tech policy has typically been “dominated” by centralised and top-down initiatives, the report said.
“In launching the report and our ‘Four Big Ideas’, we’re calling for government to harness the huge potential of technology and the tech industry to unlock the potential in every region of the UK,” said Katie Gallagher OBE, chair of the UKTCG.
“Across the UK, we have numerous strong and individual tech ecosystems. By creating a digital and innovation policy which supports business and individuals in each region, we can support true social mobility and see real opportunity for businesses to grow alongside the fast-moving innovation within tech.”
Alex Davies-Jones MP, former shadow minister for tech and digital economy, now shadow home office minister, said: “New technologies can support and grow businesses in all corners of our country and offer opportunities for exciting new careers in every community.
“But we need to work together to ensure national policy encourages local innovation. I welcome this report at a crucial juncture for our economy.”
Tech Minister Saqib Bhatti, speaking at the event, described tech as the “great leveller” and said he would review the recommendations from the report.