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ew research from the University of Exeter finds that innovation in the UK is not restricted to high-tech and pharmaceutical industries. Across the


For further ESRC Impact Case Studies visit www.esrc.ac.uk/impacts-and-findings/ features-casestudies/case-studies/index.aspx


Spotlight on innovation N


Research from a new ESRC Knowledge Exchange Fellowship finds innovation in the UK is thriving in both traditional and non-traditional areas


country, innovation can be found in unexpected places and firms, and is not just about new products but also fresh approaches in services, business processes and methods. This picture emerged from a project funded


by an ESRC Knowledge Exchange Fellowship and carried out by Dr Richard Adams working on a one- year placement with the Department of Business, Innovation and Skills (BIS). Dr Adams’ project ‘The distribution of innovation activity across the UK industry’, drew on data from three recent UK Innovation Surveys and aimed to uncover innovation ‘hotspots’, and innovative activity in different geographical areas and in a range of industries. It also sought to identify innovation in sectors not usually perceived as innovative, and in firms that engage in little, if any, research and development. The project found that up to ten per cent of firms in sectors not traditionally thought to be innovative were high performers, including construction, hotels and restaurants. In terms of geographical spread, firms in more than half of UK postcode areas achieved high levels of innovation performance at least once in the three UK Innovation Surveys. Cambridge and North west London were identified as areas of persistent innovation – the hottest of hotspots. Approximately one quarter of highly innovative firms did not engage in internal research and development. These firms, however, purchased new technologies and revised the design of products and services to achieve greater efficiency. They also conducted market research, changed marketing methods and concentrated on launch advertising of new products and services. About one half of innovative firms invested in employee training programmes to support innovation. While a number of research and policy analysis


projects have helped to build a broad picture of innovation in the UK, contributing to evidence- based policymaking, the University of Exeter project was a more detailed analysis of the patterns of business innovation and contributes to a better


The project found high performing firms in sectors not traditionally thought to be innovative, such as construction


understanding of innovation in specific sectors and geographical areas. Richard Adams’ work is one of a number commissioned by BIS that make use of the full scope of the data obtained from the UK Innovation Surveys. These surveys generate considerable quantities of data but can be distilled down to simple indicators, such as the number of firms that actively innovative. However, evidence for policy use draws on much broader and deeper analysis. The project demonstrates that there are many pockets of advanced innovation in non-high-tech manufacturing, in knowledge-intensive sectors and in the service sector. The fuller analysis shows that this innovation activity is widely distributed across the UK. The work is important because it sheds light


on the evidence underpinning the framework of government innovation policy. Also because in times of fiscal restraint, accountability and of moves to localism, there is a demand for economic evidence of innovation at a local level, such as local enterprise zones and enterprise partnerships. “The results of the research challenge preconceptions about innovation and demonstrate its diversity and dynamism. The findings are good news for the economy as they show firms across the UK are capable of responding to economic uncertainties,” says Dr Adams. n


i Dr Richard Adams, University of Exeter


Email r.j.adams@exeter.ac.uk Web business-school.exeter.ac.uk ESRC Grant Number RES-173-27-0178


SUMMER 2011 SOCIETY NOW 13


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