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nd weaknesses of the UK innovation system and to develop proposals to improve its performance. Success factors for UK innovation performance follows is a highly abridged version of the supporting analysis, summarizing the UK’s performance against the seven factors: Sources of new technological knowledge play an important role in shaping innovation systems. Sciencebased technologies are increasing in importance. New products and services tend to embody a wider range of technologies, increasing the plexity faced by individual firms. UKbased firms make extensive use of customers and suppliers as knowledge sources. The UK Science, Engineering and Technology (SET) base is highly productive and the UK has worldclass design expertise. The capacity to absorb and exploit knowledge defines a firm’s ability to turn knowledge into new products, processes or services. Fundamentally it is people who create knowledge, manage businesses and innovate. Poor skills amongst managers and the workforce more generally have hindered performance. The culture within UKowned firms appears to place less emphasis on creativity. All investments in innovation need access to finance. Relatively lower levels of innovation spend are probably more due to a lack of incentives and capacity than a shortage of funds, although some financing gaps exist. Competition provides a stimulus to innovation and helps determine the intensity of petition and the ability of firms to spot opportunities and manage risks. Customers and suppliers put pressure on firms to deliver better quality goods and services and provide opportunities for innovation. Many UKbased firms pete in global markets and the UK is an attractive market for innovative firms from abroad. The regulatory environment affects the possibilities and incentive structures for innovation. OECD parisons show the UK to be relatively lightly regulated, although there are continuing business concerns about the impact of new regulations. And works and collaboration are important means of accessing knowledge. Businesses are increasingly looking outside their sectors for opportunities to collaborate. Figure How Government policies influence innovation 5 lluyreyryreyt Areas of Government influence innovation depends on the knowledge, skills and creativity of those working in businesses. But Government has an important role in creating the right environment for innovation. Figure sets out the main mechanisms and channels through which Government – at various levels – influences business innovation. Government has already laid the foundations of an innovationdriven economy in areas such as macroeconomic policy, fiscal policy, petition policy, trade policy and education and skills. . Since 1997 we have produced three White Papers, “Our petitive future–Building a knowledge driven economy”(1998), “Excellence and Opportunity–a Science and Innovation Policy for the 21st Century” (2020) and “Opportunity for All in a World of Change–Enterprise, Skills and Innovation” (2020). In these we set in motion a series of microeconomic measures to stimulate innovation, such as increased investment in the science base, incentives to encourage research institutions and universities to mercialize their research, and measures to encourage more small businesses to start up and innovate. . Policies and programmers affecting innovation are determined at a variety of levels. In some cases, the role of the UK Government is to influence developments on a European or global scale. Chapter 3 Technology innovation Summary Developed countries around the world have recognized that success in the future will e from businesses increasing the added value from their products, processes and services. Government action to encourage businesses to develop and implement new products and services has bee a high priority. Given this, the UK Government needs to harness its resources more effectively in promoting technological innovation. The need to improve the takeup of new technologies end of the 20th century witnessed a wave of scientific discovery and technology innovation in a range of areas that have only just begun to change the way Opportunities Public procurement Regulations Advice and support for business Best practice programmers Support for developing new technology Help accessing finance Ramp。 D tax credits Support for inward investment Access to global knowledge base Business Innovation Building blocks of innovation: a supportive。
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