Problems we can face together: Is Wales getting innovation right?

With the publication of Nesta’s recent report, Is Wales getting Innovation Right?, we asked four thinkers in Wales to reflect on what the public had said and what they would like to see happen as a result.

In the first of two blog posts, Auriol Miller, Director of the Institute of Welsh Affairs and Dylan Jones-Evans, Professor of Entrepreneurship at University of South Wales share their thoughts on the political and economic divides in Wales and where efforts in policymaking could make a difference.

Auriol Miller, Director of the Institute of Welsh Affairs

Between Leavers and Remainers, the left and the right, city-dwellers, town-folk and rural people, the old and the young, Welsh society in 2020 looks heavily divided. But, as Nesta's report has shown, a consensus is nonetheless emerging about the problems we face together – including improving the economy. To bring society back together, it's important to build on this consensus in how we develop solutions.

One positive is that the people surveyed were generally supportive of innovation. A clear majority (68 per cent) believe that allowing people to take risks and fail is what drives society forward. Wales has a track record in developing more innovative legislation, such as the Well-Being of Future Generations Act (2015). However, there is a pressing need for more creative thinking about how to turn the Act's principles into practical policy and a striking 82 per cent of survey respondents in Wales had not heard of this legislation.

More recently, Wales is becoming an enthusiastic adopter of a new 'foundational' approach to strengthening the Welsh economy. Key organisations from across housing, social care, energy and other sectors, with the support of Welsh Government, are experimenting with how they provide the essential, if mundane, goods and services that we all use every day.

There is a shared aim of making the best use of the immense amount of economic activity that takes place every day in every single community, far from the trading floors of the City of London.

We are interested in this too. The IWA will be working to ensure that the lessons from all of this work directly inform policy-making, for examples working to ensure that tax, procurement, business support and skills policy all support foundational sectors. As the survey findings show, the public expect innovation from businesses, government and from individuals. But we think that a focus on the 'foundational' offers something more too. It's an opportunity to empower community organisations and community members, as well as Wales' extensive small businesses and cooperatives, to use their local knowledge to build an economy that does what they and we all need. Every day.

It is essential that we use this opportunity to demonstrate to the people of Wales that innovation can provide constructive and practical solutions to the problems that threaten to divide us.

Dylan Jones-Evans, Professor of Entrepreneurship at University of South Wales

While innovation is a key foundation to any successful and competitive country, there have been concerns that policies to support innovation are only being driven by a small number of individuals and organisations with the general public disengaged from the process.

That is why the recent survey from Nesta is valuable in not only showing current public perceptions towards innovation and technology but also shows some the wider political attitudes that have come to reflect both Wales and the UK. The study, which interviewed over a thousand Welsh adults, shows that there is not only uncertainty in Wales about the future but a sense of disempowerment in shaping it going forward.

This should not be surprising given that the survey was undertaken in November during a general election campaign when the whole issue of disconnection with the elite was the main debating point and, it could be argued, the concern which led to the 80 seat majority for the new UK Government. However, the fact that half of people in Wales say that they believe that under the current system, only people who are well-off and influential can get involved in innovation also underlines the disenchantment that many have had with politicians and policymakers over the last decade. They also want the role of innovation to address wider concerns rather than just economic imperatives. Indeed, addressing the causes of climate change, making the UK’s population healthier, improving education, and making the UK safer all rated higher for innovation than improving the UK economy.

While all these areas should also be priorities for the future, the Welsh population overwhelmingly believe that innovation should benefit many people even if the comparative benefit they experience from this is small.

For example, over seven in ten respondents say that the Government should invest in innovations which solve social problems without any economic benefit.

A similar number also believe that when investing in innovation, governments should focus on making everywhere in the country more prosperous, even if this means that the progress in better-off areas is slower than it might have been otherwise. Again, this seems to reflect the economic divide between the richer and poorer parts of the UK that seemed to have a significant impact during the last general election.

Therefore, the good news is that this study from Nesta does show that value that the public in Wales places on innovation in addressing some of the key challenges going forward. However, the results also emphasise the divide within the country between the richer and poorer parts of our nation and reinforces the UK Government promises to deal with this issue over the next five years.

Diagram showing that 83% of people want funding for innovation that impacts the largest number of people

Author

Auriol Miller

Director of the Institute of Welsh Affairs

Dylan Jones-Evans

Professor of Entrepreneurship at University of South Wales