Realising Hidden Innovation as the solution to UK's productivity gap?

Two recent NESTA reports attempt to provide evidence to stimulate wider thinking on innovation policy and implementation in the UK.

Taking services seriously: how policy can stimulate the 'hidden innovation' in the UK's services economy examines the role of the services economy and why it should be more central to innovation policy. The case is that innovation in services often differs fundamentally from innovation in advanced manufacturing and that innovation in services is vital to the UK's future productivity. Based on a survey of more than 16,000 firms which shows the high levels of 'hidden innovation' in some services sectors, the report contends that innovation in services tends to be driven by organisational change and ICT, but can be inhibited by costs and uncertainty.

Total innovation: why harnessing the hidden innovation in high-technology sectors is crucial to retaining the UK's innovation edge calls for the adoption of total innovation strategies for high value-added sectors to retain their competitive advantage. The focus is on high technology sectors and the increasing international competition these sectors face. The report identifies four types of 'hidden innovation' in high-technology sectors: from technological development not included in official definition of research and development; from organisational forms and business models; from combining existing technologies and processes in new ways; and from micro-innovations that are not recorded in surveys of innovation.

See the reports at Reports