We have some of the best universities in the world, and fantastic entrepreneurs who’ve built incredible companies. Why then does the World Bank predicted that Poland could surpass our per capita GDP in 2030? Why, despite having all the ideas, are we not executing on them more effectively?
On my recent trip to our new American office of the start-up that I joined over four years ago, I was reminded of the incredible journey of innovation and growth that we’ve been on. As the first employee, my mission was to introduce farmers to our livestock app, a venture that began with only even farms on board but has now expanded to serve 4,500 businesses in the UK.
This British agri-tech success story wasn’t built just by me but with an exceptional team of 28. We achieved this by harnessing the power of private venture capital and government innovation funding to revolutionise livestock management, tracking millions of sheep and cattle across three countries.
However, during my visit, it becomes evident that if we want more companies to compete on the global stage then the UK must embrace innovation more effectively. We need Britain’s regulatory machinery to adapt, swiftly; draw lessons from global markets; and implement essential measures to foster a culture of innovation across various industries.
For me, this became most apparent when I witnessed the vastness of the American beef market: 320 million consumers and 90 million beef cows, versus to the UK’s 72 million citizens and 14 million cows.
While British beef boasts a low carbon footprint and high welfare story, we face a challenge in terms of quality compared to the US. Since the 1970s, the USDA’s beef grading system has provided consumers with a reliable indicator of quality, Prime, Choice, and Select, setting a global gold standard for beef products.
Meanwhile, despite voting to leave the EU seven years ago, we still have not ditched the EUROP grid for grading beef, despite the fact that it rewards yield and weight rather than, as the American alternative, the actual quality of the meat.
If we can’t adopt this simple and potentially industry-changing reform, how can we expect to grasp all the benefits of our own, independent, regulatory framework in every industry? As the UK looks to strengthen global trade ties, via the recently signed Trans-Pacific Partnership and other trade deals, we must focus not only on the emotional story of our British manufacturing, food production, and our service sector, but also on enhancing innovation.
The need to adapt and innovate extends beyond the agricultural sector to all facets of British business. Notable investments, like Tata’s commitment to build a four-billion-pound gigafactory in Somerset, which will create 9,000 jobs, provides a vote of confidence in British industry.
However, we must not rest on our laurels. To thrive in a rapidly changing world, we need to foster a culture that encourages and supports innovation at all levels.
Legislation is too slow to embrace innovation
A critical aspect of embracing innovation is the timely adaptation of legislation to support emerging industries. Britain has made strides in certain areas; for example, becoming a global leader in offshore wind thanks to David Cameron’s commitment to supporting the fledging industry through the introduction of the feed-in-tariff in the early 2010s.
Yet the pace of legislative changes and government support can still be too slow. To remain competitive and attractive to businesses, the UK should prioritise reducing the burden of corporation tax. By doing so, we can encourage companies to base their operations within the country, spurring innovation which will lead to economic growth and job creation.
We need more business brains in Parliament and Whitehall
Encouraging innovation also involves bridging the gap between business and government. It should be easier for those with the talent and ambition to bring their commercial revenue-raising skills on-board by becoming senior civil servants, government advisers, and parliamentary candidates.
This would help ensure that policymaking was informed by practical experience from a diverse range of sectors and industries at every stage. Without making it easier and more attractive for entrepreneurs to become MPs, Britain will lag behind the curve in more informed and effective decision-making.
Support to bridge the export gap
Innovate UK has been successful in funding development within this country, but it can do more to help companies de-risk the leap into exporting globally.. By providing additional support to navigate international markets, more British tech companies can confidently explore international opportunities, bolstering the country’s export potential and building on our reputation for cutting-edge technology.
Releasing the breaks on our economy by reforming planning
We are hamstrung by ancient planning policy; areas like Cambridge, which are bursting with potential, are constrained by a lack of lab space, meaning that if you have a great idea out of university it would be easier in the long run to go to America than establish your business here.
To combat this we need to implement an economic development test in the national planning framework, which would better balance such considerations as landscape protection against the benefit to GDP and job creation.
We need to simplify the process too: at present, 142,000+ pages are required alone for the environmental impact assessment for new nuclear reactors – another example of how planning is stifling British innovation.
By introducing this economic development test and reducing the evidence burden, local planning authorities can prioritise applications that demonstrate the potential for job creation and economic growth, fostering innovation in vital sectors.
Innovation is the key to maintaining the UK’s global competitiveness and securing a thriving future. By learning from global markets, streamlining legislation, supporting business-to-government transitions, enhancing export support, and simplifying the planning process, this country can establish itself as a trailblazer in innovation across all industries.
Embracing innovation in every aspect of British business will not only ensure economic growth and prosperity, but also drive positive change and progress in a rapidly evolving world, not least by bringing to maturity the next generation of green energy technologies and exporting them to developing nations.
Together, let us create a culture that nurtures and celebrates innovation, propelling the UK to new heights on the global stage.
James Wright is a farmer in the South West and Conservative district councillor.
