UK leads in research but does less well on converting good ideas into economic growth, report finds

A report by the Cambridge Industrial Innovation Policy, a policy group focused on enhancing technological innovation and industrial competitiveness, has concluded that the UK excels in research and early-stage innovation but struggles to turn the results into domestic industrial capability and sustained economic growth.

Published on 19/03/2026, the group's 2026 UK Innovation Report says that the central benchmark for success should be competitiveness, measured at sector level through value-added, export performance, employment and global position.

The Cambridge Industrial Innovation Policy identifies four key messages to characterise the state of the UK’s industrial and innovation performance:

• Research excellence vs. industrial competitiveness;
• Sectoral concentration and the “overseas exit”;
• The transformation of UK manufacturing;
• Persistent and structural skills shortages.

The UK government is implementing its national Industrial Strategy as the country faces economic uncertainty, rapid technological change and increasing geopolitical pressure. The report is a response to the…