This briefing is drawn from an economic systems analysis, carried out by Cambridge Econometrics, which mapped the UK’s innovation pathways and suggests optimal approaches to support ten example technology areas. The briefing also includes four policy implications identified by the British Academy and CaSE:
- The continued uplift in R&D investment by the UK Government is likely to support the wider innovation system across both tradeable and non-tradeable innovation (the diffusion of new ideas here at home and abroad).
- Government intervention should not take a one-size-fits-all approach and instead adopt targeted approaches to capture value from innovation processes.
- Intervention can be optimised based on market structure and characteristics.
- Policy approaches to innovation require connected support to other areas, including housing, transport and infrastructure, skills development and the UK higher education system.
These implications should be considered in the context of the recent Spending Review and Industrial Strategy which aim to unlock opportunities for growth across eight priority sectors and position the UK as a leading destination for people, firms and industries. They also aim to make research and innovation central to that ambition and provide the framework for R&D support over the next four years, and beyond.
Mapping the economic returns of R&D in the UK
Read the full evidence synthesis form CaSE and the British Academy
Read moreCommenting on the research and policy implications:
Economic growth and success are clear priorities for the UK Government. That is why it is imperative that the R&D sector make a compelling and forward-thinking case for how innovation contributes to the nation’s economy. This new research provides invaluable insight as to how R&D already interacts with and drives the economy. However, we cannot rest on our laurels’, targeted tailored support is needed to unlock the full economic potential of UK R&D. With the spending review and industrial strategy having recently been published, there is great opportunity to reimagine how the UK supports, grows, and utilises innovative ideas.
Dr Alicia Greated
Executive Director, Campaign for Science and Engineering (CaSE)
Innovation isn’t a straight line from idea to market — it’s a complex web of feedback loops, bottlenecks and breakthroughs. This report helps us understand not just what innovations matter, but how and where they create value. If we want smarter, more effective policy — especially as the UK pursues a new Industrial Strategy — we need to get serious about the diversity of innovation pathways and their needs. This work shows where we’re strong, where we need to invest, and where modest interventions could unlock significant returns for the UK economy and society.
Dr Molly Morgan Jones
Director of Policy at the British Academy
About
The British Academy is the UK’s national body for the humanities and social sciences (referred to as SHAPE – Social Sciences, Humanities and Arts for People and the Economy). Their purpose is to deepen understanding of people, societies, and cultures, enabling everyone to learn, progress and prosper.
Campaign for Science and Engineering (CaSE) is the leading independent voice for UK R&D. It is a charity supported by a diverse membership including businesses, universities, professional bodies, research charities and individuals. Its members span the whole breadth of R&D – including discovery research, science, engineering, and innovation across the public, private, and charitable sectors. They collaborate with members, partners and the public to lend a clear, expert voice to decisions about research and development. They specialise in developing non-partisan, responsive solutions that help research and innovation to thrive in ways that improve people’s lives and livelihoods.
Cambridge Econometrics is an economics consultancy that works globally from offices in Cambridge (UK), Brussels, Budapest and Northampton, Massachusetts. They specialise in economic research and the application of economic modelling and data analysis techniques for policy assessment and scenario planning. They work on challenges facing economies, societies and the natural environment.
Related press
Response to Spending Review 2025
11 June 2025
CaSE’s initial response to Spending Review 2025 following the Chancellor’s speech and the publication of the supporting documents.
Initial response to UK Government R&D spending plans
08 June 2025
The weekend before the UK Government’s 2025 Spending Review, the Department of Science Innovation and Technology (DSIT) announced the headline R&D spending plans for the next four years.
Criteria for ten-year R&D funding announced
19 May 2025
DSIT have today announced the criteria that will be used by government to set ten-year R&D budgets. We welcome this positive step towards a long-term sustainable policy platform that allows the UK R&D sector to thrive.
Response to the 2025/26 DSIT Spending Allocations
04 April 2025
CaSE’s initial response to the publication of the Department for Science Innovation and Technology (DSIT) spending allocations for 2025/26.