A blueprint for a technology driven economy in the UK

To access the report, click here.

Inventive and innovative private enterprise has driven the digital technology revolution.

The countries that have benefitted the most economically from the third industrial revolution, made possible by advancements in electronics, telecommunications and computing, will likely benefit the most from the fourth: the disruption of traditional manufacturing and industrial practices by smart technology (such as artificial intelligence, massive machine type communications and personalised medicine). These countries have tended to have robust legal and regulatory frameworks and institutions, intellectual capital and academic research capabilities, stable communication, transport and energy infrastructures and sophisticated financial markets.

Whilst the UK ticks each of these boxes, long-standing structural problems in the economy, in some cases exacerbated by successive Government policy decisions, have combined to inhibit the nation from capitalising on the economic and social benefits of the digital revolution.

The central plank of the Government’s strategic plan for industrial growth in the UK is now to harness the economic benefits of the Fourth Industrial Revolution, using technology to both deepen and embed UK private sector participation in the global trade in goods and services.

The plan is that, by providing additional “smart” support to private enterprise, the UK can reposition itself at the cutting edge of the AI and big data revolution, helping to reverse years of stagnant economic growth.

The potential economic impact of a successful AI and tech strategy in the UK is significant. One study forecasts that by 2030 UK GDP could increase by 10.3% by investing in and harnessing the economic benefits of AI. Another study has forecast that AI could see a 40% increase in productivity by 2035. These benefits would add an estimated £570bn to the UK’s GDP.

This report and series will explore how the UK Government could, through sympathetic legal, regulatory, tax, investment, governance and sustainability policies, create the necessary environment to enable digital innovation that will drive growth and increase prosperity and tax revenues. It looks at the key challenges facing UK-based start-ups, scale-ups and fast growth companies in the broad tech sector, focusing on access to capital, access to talent and the policy/regulatory environment.

To access the report, click here.