From Research to Productivity: A Systems Analysis of UK Innovation Pathways

In 2024, the British Academy and CaSE commissioned Cambridge Econometrics and the Innovation and Research Caucus to conduct this systems-based analysis of the strengths and weaknesses within the UK’s innovation system.

From Research to Productivity: A Systems Analysis of UK Innovation Pathways assesses the UK’s performance in research, commercialisation and adoption by examining ten technologies. It provides detailed case study analysis and comparative evidence with a view to identifying the most promising points of government intervention within the innovation system.

The authors take a systems approach to capture and measure the non-linear and interconnected processes underpinning innovation. This approach offers a framework for assessing how research, commercialisation and adoption interconnect and influence each other to create feedback loops. The framework also provides a decision tree to understand the technology and market characteristics of different product or process innovations.

A central finding of the work is that while the UK has strengths in creating knowledge, it faces barriers in capturing value from technology-based innovation pathways. However, these barriers differ depending on specific technology and market characteristics. The report sets out how an understanding of these market structures and a tailoring of policy approaches may help generate better economic returns on R&D and innovation investment.