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New research conducted by radio frequency identification (RFID) and Near Field Communication (NFC) company Pragmatic Semiconductor reveals that while 68 percent of science and technology businesses throughout the United Kingdom agree that the country could achieve the government's "science and technology superpower" objective by 2030, 40 percent of U.K. business leaders surveyed do not agree that Britain is providing enough support for this sector to help them compete on a global scale. This comes as Prime Minister Rishi Sunak has pledged for the United Kingdom to become a "superpower" and has made that a key part of his agenda.
The report is based on bespoke market research conducted by OpinionMatters among 250 U.K.-based senior decision makers working in technology companies with operations in the United Kingdom, and science companies in research and/or manufacturing, employing more than 25 workers. The research, conducted in December 2022, reveals that 38 percent of respondents had thought better government incentives based in the United Kingdom would encourage them to invest in manufacturing facilities in the country. While Sunak's pledge is backed by George Freeman, Britain's Minister for Science, Research and Innovation, the research shows U.K. businesses feel this commitment has yet to materialize into effective support.
The research finds that 53 percent of businesses believe the U.K. government has failed to provide sufficient incentives for companies to keep their manufacturing operations and headquarters in the United Kingdom. Potential incentives could include cutting business rates to compete with other markets, better government support for capital investments, and better government subsidies for operating costs. Meanwhile, 67 percent believe the government's commitment of increasing R&D funding to 2.4 percent of GDP by 2027 is not ambitious enough to achieve the "superpower" aim by 2030.
Scott White
U.K. businesses want better policies and regulations for the technology and science sectors. Forty-eight percent of those surveyed said clearer policies were needed to drive innovation at scale in British technologies. Thirty-five percent highlighted the need to simplify the process of importing materials and exporting finished products to incentivize them to invest in manufacturing facilities in the country, while 30 percent referenced the need for better supply chain security. Forty-five percent said a commitment was needed to offer U.K. businesses a fixed percentage of public procurement opportunities, giving growing businesses an opportunity to scale domestically.
Despite these challenges, the United Kingdom is seen as a highly attractive destination to start and grow a science and technology business. Thirty-three percent of respondents said one of Britain's greatest strengths is that it is home to some of the world's top universities, while 23 percent cited the strength of the United Kingdom as a global hub for developing R&D into commercial applications and high-growth businesses.
"I'm not surprised to see businesses calling for more support from the Government to realize its ambition of becoming a science and technology superpower," said Scott White, Pragmatic Semiconductor's CEO, in a prepared statement. "The U.K. needs to retain the value creation from its innovation and research. However, this is only feasible for U.K. businesses—particularly those who are keen to expand rapidly—if the right support is there to nurture growth and ensure it happens from a U.K. base rather than overseas. Capital and finance opportunities, alongside U.K.-focused procurement policies, are critical if we are to create a level playing field with places like the U.S., the E.U. and China."
