Local leaders across England will be handed dedicated research and development (R&D) funding for the first time, as the Prime Minister unveiled a major package of reforms aimed at spreading innovation, investment and economic growth across every region of the UK.
Speaking at the Innovation Nation Summit in Manchester, the Prime Minister outlined a new approach to regional growth that will shift greater control over innovation funding away from Whitehall and into the hands of local leaders.
The plans are designed to help areas build on their existing strengths in science, technology and industry, while ensuring that more breakthrough discoveries are developed, commercialised and scaled within the UK rather than overseas.
Prime Minister Andy Burnham said:
"We’ve got the finest minds working at the most prestigious universities, the most innovative companies and clusters producing some of the most advanced technologies.
“We are doing so much right, but we can do so much more. We have good opportunities now in all of our nations and regions to deliver something that I’ve set as a mission as Prime Minister, good growth in every postcode.
“Let’s really focus on that and bring innovation to all parts of the UK as well. We can grow our companies into global giants. We can extend the chain of human achievement. We can be the world’s innovation nation."
Under the reforms, established mayoral strategic authorities will receive dedicated funding focused on later-stage innovation and commercialisation. The move will enable local leaders to invest directly in emerging sectors and high-potential businesses that can drive economic growth in their regions.
The Government says this marks the beginning of a wider devolution agenda. Future plans include transferring a significantly larger share of innovation funding to local areas, extending beyond existing mayoral authorities.
The new R&D funding will sit alongside the forthcoming Good Growth Funds, a long-term, flexible funding programme designed to support local investment priorities, job creation and higher living standards.
Ministers argue that local decision-makers are often better placed than central government to identify economic opportunities, attract investment and support business growth.
Alongside the devolution reforms, the Government will invest £1 billion through UK Research and Innovation (UKRI) over the next four years to strengthen high-growth innovation clusters across the UK.
The funding will target the priority sectors identified in the Industrial Strategy, supporting places with strong research capabilities, skilled workforces and growth-focused businesses.
The aim is to accelerate the journey from research and development to successful commercial ventures, helping create new jobs and attract private sector investment.
The Government also announced plans to strengthen collaboration between some of the UK's most successful innovation ecosystems.
A key focus will be new partnerships linking the Northern Growth Corridor with the Oxford-Cambridge Growth Corridor. These collaborations will focus on sectors including:
- Life sciences
- Digital and technology
- Advanced manufacturing
Officials believe stronger links between universities, businesses and local authorities will help promising research reach the market more quickly, while creating the scale needed to compete internationally and attract global investment.
The reforms recognise that innovation ecosystems require more than laboratory discoveries or research grants to succeed.
Businesses also need access to:
- Skilled workers
- Affordable commercial space
- Modern infrastructure
- Investment and finance
- Strong partnerships with universities and public institutions
By giving regions greater control over funding and decision-making, the Government hopes local leaders can bring these elements together through tailored growth strategies that reflect the needs of their economies.
The announcement forms part of the Government's broader ambition to reindustrialise Britain by turning more home-grown research into successful companies that remain and expand within the UK.
While Britain continues to produce world-leading research and entrepreneurial talent, ministers acknowledge that too many innovations fail to translate into large-scale businesses, productivity gains and well-paid jobs in the communities where they originate.
The new model aims to create a stronger partnership between government, universities and industry, ensuring the UK captures a greater share of the economic value created by its research excellence.
Image credit: iStock
