Plan I

Publications

Download the full version of Plan I (PDF 5MB)

Download the Executive Summary (PDF 1MB)

The case for innovation
Plan I endorsements
The 12 recommendations

The case for innovation-led growth

Since the recession started in 2008, the UK's economic debate has focused on short-term recovery, and the battle between the two big plans: Plan A or Plan B, austerity or stimulus.

But neither of these addresses the UK's longer-term growth prospects.

Our recent Innovation Index figures showed that the UK economy, far from flourishing in the last 10 years, has experienced a 'lost decade' of innovation, damaging long-term growth.

Growth depends on innovation - our ability to generate and adopt new knowledge and ideas.

A new Plan is needed

Nesta is now calling for a new conversation about economic growth, and Plan I sets out the direction we believe the UK should travel in.

We want to look beyond the short-term arguments about Plan A and Plan B and instead focus on what we are calling a Plan I to drive long-term, innovation-led growth.

Choose Plan I and help us end the innovation strike!

Plan I b economic growth graphic [original]

The 12 recommendations

Nesta's Plan I sets out 12 recommendations to kick-start sustainable innovation-led growth, and move beyond the typical economic policy that has dominated in the UK for the last decade.

Plan I's 12-policy recommendations to deliver innovation-led growth:

Financial architecture: A £200m fund for early-stage ventures; freedom to raise money for the Green Investment Bank, and a new business banks to lend to growth sectors including advanced manufacture and life sciences.
Rebalance government spending towards innovation: Invest the proceeds of the forthcoming 4G spectrum auction - estimated at £4bn - in science, technology and innovation.
Government innovation procurement: Establish innovation spending to channel £1bn of government procurement through innovative businesses.
Infrastructure investment: Relax planning restrictions around innovation clusters.
Collective intelligence: Higher education funds for radical inventions around knowledge creation - putting design thinking at the heart of the new Catapult centres.
Incentives for innovation: A £25m 'challenge prize' fund to inspire the nation to tackle big technological challenges.
Measurement, data and standards: Reshape the tax credit system to recognise hidden innovation and R&D.
Boosting innovation across the UK: Supporting innovation clusters where they are already thriving.
Innovation in the labour market: Link procurement to local jobs, training and apprenticeships and encourage innovation around micro-jobs and micro-franchises. Support innovative projects such as Studio Schools/establish norm of one apprenticeship per £1m turnover.
Public and social innovation: Demonstrate the most effective models and approaches to tackle the severest social challenges, with cross-government funding commitment for public service incubators to share the most effective models.
Education: Create the next generation of digital makers, giving all teenagers the chance to make, code, design and program.
Remove barriers to entrepreneurship: Change the immigration cap to welcome skilled foreign graduates and entrepreneurs, and recast regulation to encourage new market entry.

Plan I

Executive summary

Read a round-up of the key recommendations from our Plan I report.

Download the Executive Summary

Innovation stagnation

Browse through our list of recommended reading on the issue of innovation stagnation

Innovation Index 2012

Read our latest update from the Index - the measure of how much the UK invests in innovation

Plan I in Scotland

Our Plan I report argues harnessing innovation could net £12 billion a year for Scotland's economy.

Download the paper

Join the debate

How would you tackle the collapse in innovation investment? Tell us what you think is the right way forward for economic growth.

Join in the conversation on Twitter #plani and tell us how you think the economy can get back to long-term growth.

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ginevradabenci

04 Feb 13, 8:20pm (2 months ago)

A new economy MUST take account of the world's pressing problems

The most pressing global issues - population explosion, population instability, environmental despoilation and climate change - demand a new economy based not on consumption of resources but on enhancing each other's lives. Services that have a personal impact need to be provided locally, often face-to-face, which helps to keep money local. In Britain, we also need to recognise the industries we are good at, support them and export their products; the ones that spring to mind are pharmaceuticals, computing, fashion, publishing, film.

Here's my suggested checklist for changes we need to make in order to foster a new, diverse, creative and sustainable economy.

1. Reduce red tape and business rates for small businesses
2. Reduce perks for big businesses (easy planning permission and even free car parking for superstores for example - why does this happen?!)
3. Scrap the national curriculum and allow children over the age of 11 (or could be 12/13) to pursue their interests (rather than chasing A grades in the same narrow range of subjects); middle schools could be the solution to this, allowing other schools/colleges for older children to specialise
4. Give children credible careers advice, provided by people who have done real jobs
5. Place more emphasis in school on life skills such as risk taking and public speaking
6. Require universities to distinguish between courses that are approved by specific employers and those that are not
7. Strengthen taxes on waste, pollution, environmental degradation etc, and give tax rebates on ideas that reduce waste, are healthy etc
8. Stop assuming that all good economic ideas come from higher education institutions. It's just not true. What about a cook who invents a better pasty?!
9. Be more careful when calculating the benefits of migrant workers - need to factor in damage to the environment from more building, roads etc; future costs of healthcare, education, pensions - and need to recognise that it is not racist but simply prudent to think carefully about the size and variation of population that any one economy can support.
10. Find ways of ensuring that Amazon and other multinationals pay tax in the UK - maybe tax them on each transaction (just as some companies see fit to charge us a 'booking fee' when we buy their service online)

MHM

19 Sep 12, 2:23pm (6 months ago)

Plan 1

We need to think more, learn more and profit more these days IF dynamic, small to medium - sized organisations are to grow more and create more jobs.
But first the leaders of these organisations need to be encouraged to embrace more change, ie, not just to improve and develop business performance levels but to innovate.

Based on over 20 years work experience as market development champion this will require powerful innovation techniques and proven management tools to be learnt and used more.

Plan 1 is good basis for helping to establish a more innovative culture BUT the benefits of innovation will only be acheived through the collaboration of leading practioners and leading organisations such as Nesta working closely with the Government of today (or tommorrow)and other established bodies such as the Banks, etc

For more info please feel free to email mhm@thinkmore.co.uk

cheshwrg

10 Sep 12, 2:54pm (6 months ago)

Plan 1

I have received approximately £350,000 of government funding for university research into my inventions. It was mainly squandered by academics that had no grasp of business ethics.

See for example www.cheshire-innovation.com/sali/pedsali.htm

Plan 1 is imaginative and sound, but it must include funding for a transparent policing body to monitor investment into innovation focused university research.

Bill Courtney

LRM

10 Sep 12, 12:22pm (6 months ago)

No. 13 for recommendations

Grants to UK manufacturers and no rates and corporation tax.