This report presents a three point plan for the UK to create a more innovative economy to beat the recession.
- The Government’s policies must help build an economy geared towards future growth, by focusing on areas of potentially high growth.
- The Government should address the decline in funding for the earliest, highest-growth businesses by working with the private sector to re-energise the venture capital market.
- Local and regional government, together with businesses and academia, must base their plans on developing local strengths and clusters, rather than focusing solely on London.
The recession now upon us is the most serious since the 1930s. Nothing short of a complete overhaul of our economy will allow us to meet this challenge. If the UK's attempts to stimulate the economy aim at nothing more than restoring the pre-recession status quo, they are doomed to fail.
Our former recipe for economic success, which relied too much on financial services and on ever-increasing property prices, is not adequate for the challenges of the future. The UK's recovery plan must not only address the short-term effects of the global financial crisis, but also help the UK focus its economy on growth and innovation.
Charles Leadbeater and James Meadway