DTI press release - Darling search on for next business sector winners

19/06/2007

"Britain is a world-leader in science and research and while that can be measured in research studies or number of patents it isn't so easy to measure the innovation that is going on in our high-street shops, building companies or banking services."

He will announce the setting up of the first of five industry led action groups to identify innovation and share the lessons of Britain's best. The groups are being developed in partnership with the National Endowment for Science, Technology and the Arts (NESTA) with the first looking at the retail sector in partnership with the British Retail Consortium.

Others areas being considered with industry include transport logistics, business services, environmental services and construction industries.

It will come as two reports are published which will show that British business needs to be in the front line of the next innovation 'revolution' in the services sector in order to remain a global leader.

Secretary of State for Trade and Industry, Alistair Darling, said today:

"Britain's got talent for innovation. But like a lot of talent it can remain hidden. It is not just in the arts, but we have untapped stars from our retailers to construction companies.

"Finding the next 'innovation revolution' is key to Britain's future. Whatever it is, it's likely to come from somewhere quite surprising. The action groups I'm announcing today have the job to spot that talent and share the lessons of their success.

"Britain is a world-leader in science and research and while that can be measured in research studies or number of patents it isn't so easy to measure the innovation that is going on in our high-street shops, building companies or banking services.

"We have a chance to change that. It is a vital driver to ensure we're a world-leading economy. It's the way we'll stay in front in the future."

The diverse nature of innovation is underlined the reports released today, the DTI's 'Innovation in Services' and the National Endowment for Science, Technology and the Arts' (NESTA), 'Hidden Innovation'.

Jonathan Kestenbaum, NESTA Chief Executive commented:

"These action groups represent an important step in understanding how innovation actually happens in critical areas of the economy. We will investigate the individual triggers and barriers to innovation in each sector and the way in which best practice can be shared within and beyond across industry boundaries. It is only with this level of understanding that we can create the right conditions for all innovation to flourish."

The Sector Innovation Action Groups project will be completed in 2008 and will deliver recommendations for future Government action geared to stimulating and supporting innovation across the service sector.

NESTA's report calls for further investigation into innovation in the services sector and reveals that sometimes adopting existing new technology, rather than the discovery itself, is what creates a recipe for success.

One example of this is the oil and gas sector, where companies have adopted Nuclear Magnetic Resonance (NMR) technology to maximise the commercial gain from mature oil fields, but which was originally developed for use in medicine.

Download NESTA's Hidden Innovation Report.

You can contact the Department of Trade and Industry press enquiries on +44 (0)20 7215 6140.

• The Government supports innovation using several key means, including R&D tax credits and funding for key research through the £3.4 billion science budget, which has doubled in the last decade.
• The Technology Strategy Board, when it becomes an independent Non-Departmental Body in July, will also have a new focus on the services sector, helping to encourage the development and use of new technologies.
• The DTI report 'Innovation in Services' presents a series of papers from leading academics in the field. The papers bring diverse perspectives to the study of innovation including analysis of 'experiential services' (entertainment, flights) and new research on how firms across the UK interact with the knowledge infrastructure. The paper is intended to stimulate wider discussion on innovation in services, for example on how best to measure innovation and the role for Government policy.
• NESTA's 'Hidden Innovation' report takes a detailed look at six sectors that are not regarded as being highly innovative, at least according to traditional ways of measuring innovation - oil production, retail banking, construction, legal aid services, education and the rehabilitation of offenders.