Research Theme: Evidence Base for Innovation Policy?

 How do policy-makers access the evidence base to formulate policy? To answer this key question, we will engage with the Chief Scientific Advsiers to the UK government departments and with the Cabinet Office's Capability Review Programme. We aim to deliver a programme of work which will address key innovation policy-related issues arising from the work and activities of government. We will also draw on the international review of developing systems in other countries as well as the internal knowlege base of our partner institutions and sponsors.

This project draws on inputs by senior academics associated with the UK~IRC programme, including principal investigators linked to other projects, and other academics and policy makers taking part in the research process. Its objectives are to identify the principle channels by which the evidence base on innovation informs public policy in its national comparative context.

Project Progress 
A major development in 2011-12 has been the launch, and ongoing support, of the joint UK~IRC CIHE R&D Task Force. This is based on funding and support from TSB, BP, EPSRC,  HEFCE and will produce a final report in June 2012.  The work is supported and guided by a high level steering group drawn from the sponsors, higher education institutes and major businesses and the policy community and is chaired by Dr David Eyton of BP and Professor Shirley Pearce Vice Chancellor of Loughborough. A first report 'The UK R&D Landscape' by Alan Hughes and Andrea Mina was published in March 2012, following a series of presentations at HEFCE, BIS the Royal Society of Engineering and to the steering group. A seminar to discuss the report was held at BIS on 31st January 2012.

The UK R&D Landscape report provides an analysis, in an international comparative framework, of the conduct of R&D expenditure in the UK by the business, government and higher education sectors and of the funding of such R&D from public, private, charitable and overseas sources. It uses the most recent UK government and OECD statistics to analyse changes over time in the scale of R&D in the UK and its distribution across industrial sectors and size classes of firms. It also analyses the pattern of government policy support for R&D and the scale of R&D relative to investments in other intangible assets such as software, skills and training and design as well as investment in capital equipment and other tangible assets. The objective is to set the scene for further work that will focus on the impact of UK R&D on output and productivity and qualitative case study research on the main challenges faced in four UK sectors ((pharmaceuticals, energy, creative-digital-and IT, and construction) in enhancing the value to be gained from UK R&D. The engagement of key industrial players in an interview programme has been achieved in these sectors and the interview programme is underway.

The R&D landscape report is complementary to and extends the recent economic analysis supporting the Innovation and Growth Strategy launched by the Government in December 2011.

The project members are heavily involved in policy practice and advice in the UK and their input and advice is internationally sought. Project members took part in policy discussions in Mexico and in several European countries. 

The extensive interactions with leading academics and policy makers in the UK and abroad has led to the identification by the team of number of issues of common concern across countries and policy communities and where the opportunity to examine the links between the evidence base and emerging policy practice are potentially most useful. The UK~IRC team already has a strong research base in each of the areas identified which arises from multiple projects carried out in recent years including the UK~IRC portfolio. 

The areas identified are:

• the evolution of policy towards university funding and the public funding of research more generally

• the evolution of policy towards the role of small entrepreneurial firms in the innovation process and in particular support frameworks for financing innovation

• the evolution of policy towards intermediate research and technology organisations (such as the UK “Catapult” programme).