Our new report shows that there has been a £24bn collapse in innovation investment over the last 3 years.
The UK economy also experienced a 'lost decade' of innovation, with new evidence showing that businesses had a crisis of confidence in the 2000s, prioritising cash and concrete over investment in innovation.
Nesta is now calling for a new conversation about economic growth, looking beyond the short-term arguments about 'Plan A' and 'Plan B' and instead focusing on a 'Plan I' to drive long-term innovation-led growth and end the innovation strike.
Our latest Innovation Index released today shows that investment in innovation by British businesses has fallen by £24bn since the recession began and has not recovered. This is five times the amount the Government spends each year on science and technology research.
These figures should act as a wake-up call for government and business as innovation is one of the most important drivers of sustainable economic growth. Between 2000 and 2009 innovation delivered 63 per cent of the UK's economic growth.
Our CEO Geoff Mulgan said, "Everyone agrees that innovation is the only route to long term growth. The concern is that today's report and Investment Index show that investment in the future didn't just fall during the immediate aftermath of the financial crisis, but also continued falling as the economy appeared to stabilise."
"Other countries are making investment in innovation a top priority and the UK cannot afford not to do the same. Our data shows that British business prioritised cash and concrete over investment in future technologies and services, a potentially disastrous decision that now needs to be put right. That's why over the next few months we'll be setting out the details of what we call Plan I - a plan for innovation-led growth - as an alternative to the increasingly sterile debate between Plan A and Plan B."
We will release 'Plan I' in September and outline our proposals on how to stimulate UK innovation for economic growth.
Read the full press release on the £24bn collapse in innovation investment over the last 3 years.
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