Investment in the UK’s Tech and Innovation Agenda is the Key to UK growth
In the recent years following Brexit, the UK saw its international trade policy increasingly being determined by broader geopolitical shifts, with a rising need to be positioned to trade with all countries across both mature and emerging markets around the European Union (EU), the United States (US) and in Asia.
Compounding this trend are the forthcoming elections in the US in November and in the UK, which will influence how fast (or slow) we come to a trade deal between the US and the UK. Elections elsewhere will also run against the backdrop of an increasingly expansive China, a situation that will continue to challenge US hegemony.
Regardless of election results, the incoming UK government has a major opportunity to play its full role as the world’s fifth largest economy and to make its goods and services attractive to all markets. This way, the UK can support free trade both in the EU and the US, as well as strengthen its presence across the rest of Asia and Africa.
Accelerating the UK’s geopolitical success is in direct relation to the UK’s position as a global technology leader.
Technology is critical in shaping most industries and lack of investment in technology innovation and ecosystems will have a detrimental impact key industries such as Defence, Energy and Pharmaceuticals, which are vital for UK growth domestically and on the world stage. The importance of doing more to create opportunities outside of the Western world is reflected in Microsoft’s recent announcement of a $2.2bn investment into new cloud and AI services in Malaysia, Thailand, Japan, and Indonesia.
Any incoming government in the UK will need to ensure we have a clear, feasible plan and requisite funding for the continued growth of this sector.
A large part of this means having the correct levels of private and public investment in place to support and mobilise the UK’s technology sector to create new markets globally. Partnering and collaborating with companies who have supported governments across Europe are a starting point of understanding quickly what works, what doesn’t – and critically, what technologies are already available to reuse and pivot to save time, budget, and effort.
An emphasis on better IT and technology delivery across a multi-year, long-term could also uplift productivity statistics for the UK, which in many parts of the country have not really improved since 2014, despite costs of living rising significantly. Many government services are unable to harness the full power of the data they hold to make informed operational and policy design decisions – resulting in failure demand, repeated eligibility checks and recollecting / revalidating data that clogs up government service delivery. Half of government’s £5bn annual IT spend is on these costly and ineffective legacy systems – this needs to be addressed to enable government to respond to an ever-more-rapidly changing world.
Further, how can we ensure that regulation encourages the right outcomes, but does not become a barrier to scaling these industries? For instance, the incoming government might approach it by targeting specific problem spaces, and delegate regulation design to the regulators in a similar fashion for the online harms bill. Another key method will be to create legislation that canvasses diverse insight from a range of experts, large and small suppliers, and the public to understand a fuller picture of the potential risks to mitigate against and the opportunities not to crush.
Other factors to consider will be ensuring regulators have the right balance of experience and skills needed to work with multiple groups to design new regulations that meet core needs, and to create a framework which enable regulations to be tested with the market to understand impact and iteratively improve them. Finally, a critical piece of regulation is around online authenticity of content – how can we guarantee a common standard is enforced?
Increased automation and the use of AI-enabled technology, combined with a credible industrial plan will go a long way in improving the UK’s position as a technology leader and will be a major opportunity for any incoming UK administration. Time – and election results – will tell which accelerators will help push us forward. In the meantime, the government can start to line up the industries ripe for change and review successful technology deliveries we can repurpose to address gaps quickly.
Authors
Richard Davies
Richard Davies, an IT professional with a background in government studies, is driven by a vision of streamlined interactions between citizens and the state. His career trajectory was influenced by an early industrial placement during the burgeoning era of personal computing. With degrees in International Relations and Public Administration, Davies advocates for a small state ethos, empowering individuals to shape their futures. He's dedicated to leveraging technology to enhance government efficiency, having observed persistent shortcomings in large-scale programs.