Annual innovation report

This report is a comprehensive review of the key elements for innovation in the UK, including its contribution to economic growth, the UK research base and the activities taken by business to build competitive advantage.

Download the Annual Innovation Report (2.9Mb PDF)

NESTA was asked by David Willetts, Minister of State for Universities and Science, to work with BIS in the preparation of the Annual Innovation Report 2010. 

A key component of the report is NESTA’s Innovation Index project. The Index measures the investment in intangible assets and demonstrates the importance of these investments in driving economic growth.

Some key findings of the report:

• Despite a 2.5% fall in business R&D in 2009, businesses continued to spend £15.5bn. This represents 1.1% of UK GDP
• Investment in intangibles was £140bn in 2008, 14% of private sector output. These investments accounted for nearly a quarter of average annual labour productivity growth between 2000 and 2008.
• Overall innovation accounted for 63% of labour productivity growth over the same period.
• Government investment in R&D was valued at £9.4bn in 2008/9

The Annual Innovation Report 2010 is supported by two Index reports:

• Driving Economic Growth: Innovation, knowledge spending and productivity growth in the UK prepared by Imperial College and ONS
• Measuring Wider Framework Conditions for successful innovation: A system’s review of UK and international innovation data prepared by Manchester University.

Published
January 2011

Authors
BIS, NESTA