The share of UK businesses classed as innovation-active fell to 34% in 2022-24, down from 53% a decade earlier, according to new figures.
The National Centre for Universities and Business (NCUB) has warned that the decline threatens the UK’s growth prospects at a time when productivity and investment remain under pressure.
The findings build on evidence that UK innovation activity had already dropped to a decade low, despite growing political emphasis on science and technology.
NCUB said the figures point to persistent barriers preventing businesses from investing in research and development and bringing new ideas to market.
Rosalind Gill, director of policy at NCUB, said: “A shrinking base of innovative businesses is a serious concern. Innovation is not confined to a handful of frontier sectors or high-growth companies. It depends on businesses across the economy investing, adapting and bringing new ideas, products and services to market.”
The government has placed growth and innovation at the centre of its economic agenda, with reforms already underway across the UK’s research and innovation landscape – including changes to UK Research and Innovation (UKRI) and the development of a new Industrial Strategy.
However, business leaders have consistently called for clearer long-term priorities, stronger pathways from research to market, and reduced complexity across the system. According to tge NCUB, the future role of UKRI would be central to strengthening the link between research and economic impact.
Gill added: “The UK has many strengths. We continue to produce world-class research, generate promising discoveries and collaborate effectively across institutions. Innovation is not created by research alone, however. It depends on businesses investing in R&D and innovation, shaping demand, adopting new technologies and working with the research base to solve real-world challenges.”
Read next: National Grid partners with Nattergal for biodiversity gains
Are you a building professional? Sign up for a FREE MEMBERSHIP to upload news stories, post job vacancies, and connect with colleagues on our secure social feed.
