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Britain's New 'Department For Innovation' Mandates An Innovation Strategy For Every Government Agency
By Richard McCormack
richard@manufacturingnews.com
Britain has unveiled an "Innovation Nation" agenda aimed at re-invigorating its economy. The newly created Department for Innovation, Universities and Skills (DIUS) has proposed changes in Britain's procurement rules, research funding and regulations to "shape the market for innovative solutions," says a policy document issued by the department in March.
"The Government's aim is to make the UK the leading place in the world in which to be an innovative business, public service or third sector organization," says the plan. "We aim to build an Innovation Nation in which innovation thrives at all levels -- individuals, communities and regions."
It will do this in large part by shifting the government's emphasis from "supplying" research funding to companies and universities to putting in place government agency "demand" for innovative products and services. "Government has a role in creating markets where they may not exist or demonstrating the viability of innovations that others will not necessarily adopt," says the strategy document. "Organizations are increasingly reaching outside their walls to find ideas -- to universities, other companies, suppliers and even competitors," says the plan. "Government policy needs to recognize these new sources of innovation and, in particular, develop new instruments that drive demand for innovation as well as its supply."
To drive increased demand for innovative products and services, the Department for Innovation is requiring that UK government agencies issue "Innovation Procurement Plans" that describe how they will "drive innovation through procurement and use innovative procurement practices," says the department.
The Department for Innovation is also in the process of reforming the country's Small Business Research Initiative (SBRI). The country spent about 2.3 billion pounds on its SBRI program in 2006 and 2007. "However, the scheme has not managed to reproduce the kind of success attributed to the Small Business Innovation Research (SBIR) program in the United States," says the strategy document. "Specifically, there remains concern that the introduction of targets have not hard-wired innovative procurement practices into routine Departmental behavior and that tenders for research remain focussed on policy development rather than the strengthening of research in scientific and technical areas." A new version of the program will be initiated in the Ministry of Defense and the Department of Health and then be extended to all government departments by April 2009.
The Department for Innovation will also start hiring innovation experts from the private sector "for the purpose of mentoring in pro-innovation procurement," says the department. It plans on working closely with business groups on streamlining regulations to foster innovation and it will publish a "Science and Society Strategy" this fall aimed at implementing its recommendations.
"DIUS will sponsor New Partnerships for Innovation that will bring together venture capital, universities, business and regional government to align efforts and develop innovative solutions to local and regional challenges," says the innovation strategy. The Department for Innovation "will publish a prospectus for New Partnerships in autumn 2008."
An "Innovation Platforms" program funded at 180 million pounds will be run by Britain's Technology Strategy Board. "Over the English regions, at least 500 businesses will be given an innovation voucher to work with a knowledge base institution of their choice, with the aspiration that this would increase to at least 1,000 per year by 2011, as the vouchers were demonstrated to be effective for businesses," says the strategy document. "This is expected to mean an investment of at least 3 million pounds to initiate collaborations between SMEs and the knowledge base."
The Department for Innovation will create a new Innovation Research Center "to ensure a steady supply of high quality innovation research into the UK innovation policy community." It will also develop an Innovation Index to measure the country's performance.
For a copy of the plan "Innovation Nation: Department for Innovation, Universities & Skills," go to http://www.dius.gov.uk/docs/home/ScienceInnovation.pdf.
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