英文_剑桥工业创新政策与制造研究所_英国创新报告_2025_72页_2mb

UK Innovation Report 2025 Summary

Core Content

The UK Innovation Report 2025 provides an in-depth analysis of the UK's industrial and innovation performance in a global context. It aims to support evidence-based policy discussions by integrating various indicators of innovation and industrial activity, offering a comprehensive view of the UK's economic structure, R&D investment, and workforce trends.

Main Themes and Key Findings

Theme 1: Structure and Performance of the UK Economy

• Economic Shifts: Over the past two decades, the share of manufacturing in the UK's GDP has declined significantly, from 14.8% in 2000 to 9.1% in 2023.
• Sector Contributions: The top contributors to the UK economy in 2023 include:
  • Wholesale and retail trade (9.9% of value added)
  • Manufacturing (9.1%)
  • Financial and insurance activities (8.8%)
  • Human health and social work (8.5%)
  • Professional, scientific and technical activities (8.3%)
• Employment Trends:
  • The top employment sectors in 2023 are human health and social work (13.3%), wholesale and retail trade (13.1%), professional, scientific and technical activities (9.4%), administrative and support services (8.5%), and education (8.4%).
  • The manufacturing sector, although shrinking in employment share, is still the largest contributor to capital investment.
• Productivity Growth:
  • Manufacturing showed notable productivity gains between 2010 and 2022, with fast-growing sectors including transport equipment, machinery, metal products, and automotive.
  • The top industries by labour productivity in 2023 are mining and quarrying, electricity supply, financial services, and information and communication.
• Supply Chain Impact:
  • The UK manufacturing supply chain contributes approximately 15% of the UK economy's value added and employment when considering indirect effects.

Theme 2: Investment in Innovation

• R&D Expenditure:
  • In 2021, the UK provided the highest level of government financial support for business R&D as a share of GDP among OECD countries (0.48%), with R&D tax relief accounting for 0.33% of GDP.
  • The UK's R&D expenditure remains just above the OECD average but is still behind leading countries like South Korea, the USA, and Germany.
• Global R&D Leaders:
  • The UK ranks among the top R&D-investing countries globally, with the top 10 R&D-investing companies in the world including major firms like Microsoft, Siemens, and Rolls-Royce.
• Patent Activity:
  • The UK has a strong presence in patent applications for key technology fields, particularly in renewable energy and low-carbon technologies.

Theme 3: Industrial Performance - International Comparison

• Global Manufacturing Shares:
  • The G7 countries collectively account for 33% of global manufacturing value added in 2022, down from 56% in 2000.
  • China has become the world's leading industrial player, increasing its share from 6.4% to 31% between 2000 and 2022.
• UK's Decline:
  • The UK's share of global manufacturing exports fell from 3.7% to 1.5% over the past two decades.
  • The UK's global market share in advanced industries dropped from 4.4% in 2000 to 2.6% in 2020.
• Competitiveness:
  • The UK has lost competitiveness in high-value-added industries, including pharmaceuticals and transport equipment.
  • International competitiveness rankings show the UK's position has weakened compared to other industrial powers.

Theme 4: Science and Engineering Workforce

• Education and Skills:
  • The UK workforce has high tertiary educational attainment, with 60% of 25-34-year-olds holding a university degree, compared to the OECD average of 48%.
  • However, the UK has a lower rate of vocational education, with only 22% of young people pursuing it, significantly below the OECD average of 31% and European peers like France and Germany.
• STEM Workforce:
  • In 2023, the UK STEM workforce accounted for 28.7% of total employment, growing by 22% over the past decade.
  • Projections suggest a 6–10% increase in STEM employment between 2023 and 2030.
• Skills Mismatches:
  • Persistent skills and qualification mismatches exist, with 37% of UK workers feeling over-qualified and 34% over-skilled for their roles.

Theme 5: Net-Zero Innovation

• Greenhouse Gas Emissions:
  • The UK has decoupled GDP growth from greenhouse-gas emissions, meeting its climate targets so far.
  • Future carbon budgets will depend on significant reductions in hard-to-decarbonise sectors such as transport, buildings, and agriculture.
• Public R&D Spending:
  • The UK ranks fourth in public R&D spending on low-carbon and renewable energy technologies between 2013 and 2023.
  • In 2023, the UK's public R&D budget for these technologies was $2.77 billion, lower than Japan, France, and the USA.
• Patent Activity:
  • The UK is a leading innovator in environment-related technologies, ranking seventh in patent applications (2010–2021).
  • The top UK contributors to green technology patent families include companies like Rolls-Royce, BP, and Siemens.

Key Data Highlights

• The UK's manufacturing share of GDP has fallen from 14.8% to 9.1% over the last two decades.
• The UK's share of global manufacturing exports dropped from 3.7% to 1.5%.
• The UK leads in government support for business R&D as a share of GDP, relying heavily on tax relief.
• The UK has high tertiary education attainment but lags in vocational education and technical skills.
• The UK STEM workforce accounts for 28.7% of total employment, with projected growth of 6–10% by 2030.
• The UK has shown strong innovation in renewable energy technologies, though not at the top of the global rankings.

Conclusion

The UK Innovation Report 2025 serves as a critical reference for policymakers, highlighting the challenges and opportunities in maintaining the UK's industrial and innovation competitiveness. While the UK has a strong foundation in R&D support and certain high-value industries, it faces significant declines in manufacturing's global share, persistent skills mismatches, and a need to enhance its presence in export-oriented and advanced manufacturing sectors. The report underscores the importance of targeted policy actions to address these issues and align with the UK's industrial strategy goals.