Industrial strategy required to 'focus on innovation', says IoD

08 Jun 2023

The Institute of Directors (IoD) has urged the government to create an industrial strategy to help 'define specific long-term priorities for the UK economy'.

A survey carried out by the IoD revealed that 88% of its members favour the development of an industrial strategy. Less than 10% of IoD members think economic growth should be generated by market forces.

The survey found that firms want an industrial strategy that focuses on reinforcing the UK's capabilities as a centre of excellence for Research and Development (R&D) and green investment.

58% of firms polled believe that the strategy should also focus on the development of skills, and 57% would like it to champion developing infrastructure.

'The recent priority for UK government policy has been on regaining economic and financial stability, and in laying the groundwork for the return of economic growth,' said Dr Roger Barker, Director of Policy at the IoD.

'However, this is not enough to sustain the competitiveness of UK business. Business leaders clearly see the value of a longer-term policy framework which places innovation at its core, and which enables innovations to be commercially exploited in the UK.

'Experience suggests that UK policymakers are ill-suited to 'picking winners', either in terms of companies or sectors.'