A report published this week by researchers at the charity, in collaboration with Prof Roberto Unger, leading Brazilian political philosopher, whose former students include Barack Obama, argued that opportunities of a more knowledge-based economy are being unnecessarily confined to a few companies, places and small parts of the population. This is causing inequality, stagnant productivity and a host of political tensions.

The priority for governments is to greatly widen access - helping smaller businesses use leading-edge techniques and technologies, and transforming education.

This recommendation for the UK stems from the analysis in the report, ‘Unleashing Imagination: Democratising the Knowledge Economy’. The proposal for lifelong learning budgets for every working adult would go some way to providing everyone with a way to access the economic opportunities offered by new technologies and business models.

Singapore and France are showing the way on a modest scale. For example in France, the Compte Personnel de Formation (individual training account) credits full-time workers with 24 hours of training per year worked, up to a maximum of 150 hours. This model could be extended to provide support for other expenses associated with learning, similar to those provided to people doing jury service. It could be funded from increases in inheritance tax receipts, which have been growing by 10% year-on-year*. This way the educational and development opportunity of inherited wealth can be unlocked from already wealthy families and spread across society as a whole.

Report co-author, Madeleine Gabriel, Nesta Head of Inclusive Innovation, says:

“Last week’s university admissions scandal in the USA underlines two things - the fact that an undergraduate education at a top university can be make-or-break in determining how our careers pan out, and the role that wealth plays in shaping people’s opportunities.

“If we want a knowledge economy that benefits everyone,we need to change both these things. With technology moving so fast, we can’t expect our learning to be complete by age 21. We’ll need to develop new skills throughout our lives. AI and other technologies will disrupt many industries, creating huge opportunities for economic gain but we need to face up to the insecurity this will cause for those without the wealth to take advantage.

“We can help tackle this problem by ensuring funding for learning follows individuals, not just institutions. Lifelong learning funded from inheritance tax is just one way that we can make sure that the wealth of one generation creates opportunities for everyone in the next, not just the lucky few.”

The ‘Unleashing Imagination’ report is launched on Monday 18 March at an event with Prof Unger, Nesta Chief Executive Geoff Mulgan, economist Mariana Mazzucato and journalist Paul Mason. Prof Unger will also be discussing the report at an event with Lord Robert Skidelsky, Jon Trickett MP and Chi Onwurah MP on Tuesday 19 March.

The report argues that the current structure of the knowledge economy means that its biggest firms are among the highest valued in the world but that its benefits are only felt by small numbers of people and places. History has demonstrated that trickle-down economics doesn't work, and redistribution through taxation is not sufficient to share the opportunities held by the largest companies. It presents a three pronged approach that will democratise the knowledge economy by transforming economic institutions, social security, and the way democracy functions. Specifically, it calls for revolutionising the way small businesses and entrepreneurs access funding, technology and advanced productive practices to support their growth; giving citizens greater ownership and control over companies and personal data; creating a new social inheritance fund; using new tools to increase democratic participation, and creating the basis for a strong independent civil society and trade unions equipped for the future.

Ends

Press contact - Will Hoyles, 07812 362714, [email protected]

Full copies of ‘Unleashing Imagination: Democratising the Knowledge Economy’ and the accompanying article containing the policy proposal are available under embargo.

The two events linked to the report and taking place at Nesta’s office at 58 Victoria Embankment, EC4Y 0DS are:

‘Democratising the Knowledge Economy’ on March 18 at 6.30pm

https://www.nesta.org.uk/event/democratising-the-knowledge-economy/

‘Possibilities for a new economy’ on March 19 at 6.30pm

https://www.nesta.org.uk/event/possibilitiesforaneweconomy/

Press entry for both events is available on request as are interviews with the reports authors.

*Inheritance tax statistics come from - https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/731610/Inheritance_Tax_National_Statistics_Commentary.pdf

Related past Nesta content includes our predictions on adult learning: https://www.nesta.org.uk/feature/10-predictions-2017/lifelong-learners/

And work underway to provide adults with navigation tools for jobs and careers https://www.nesta.org.uk/blog/open-jobs-making-labour-markets-smarter-and-empowering-jobseekers/

About Nesta

Nesta is a global innovation foundation. We back new ideas to tackle the big challenges of our time, making use of our knowledge, networks, funding and skills. We work in partnership with others, including governments, businesses and charities. We are a UK charity that works all over the world, supported by a financial endowment. To find out more visit www.nesta.org.uk