Technology Adoption Review
Published 17 December 2024
Foreword
Technology adoption is a key driver of productivity growth and is thus an important priority for the government in delivering its growth mission.
History has shown us how pivotal the adoption of new technologies has been in our nation’s history. From the Industrial Revolution to the invention of the internet, the UK has always positioned itself at the vanguard of technological development, which has led to the widespread diffusion of technology across our economy.
With the advent of disruptive new technologies, including AI, there are opportunities and challenges ahead that will demand more agile responses.
There is already much to celebrate. Global rankings show that the UK does well, ranking fifth in the Global Innovation Index 2024. However, the same index ranks the UK 12th for knowledge diffusion and 31st for knowledge absorption, suggesting that the UK’s leadership in the development of ideas and technologies does not always translate into widespread adoption by firms.
It is therefore crucial that we understand why these challenges remain and address them. That is why at the Autumn Budget 2024 the Chancellor tasked us to lead a review of barriers whose removal could enhance technology adoption by businesses, with a focus on the growth-driving sectors identified in the Industrial Strategy green paper.
We are launching this call for evidence to gain views on what has worked well and what needs to change to ensure the UK remains at the forefront of successful technology adoption. If you are interested, then we would be delighted to hear from you, and we encourage you to respond. It is important that we hear from a range of views to inform the government’s future strategy in this important area.
Professor Dame Angela McLean, Government Chief Scientific Adviser
Dr Dave Smith, National Technology Adviser
Why we are doing this review
At Autumn Budget 2024, the Chancellor announced that the government will task the Government Chief Scientific Adviser (GCSA), Professor Dame Angela McLean, and the National Technology Adviser (NTA), Dr Dave Smith, to lead a review of barriers to the adoption of transformative technologies that could enhance productivity, with a focus on the growth-driving sectors identified in the Industrial Strategy green paper.
Reinforcing the government’s growth mission, the review’s recommendations will directly inform the development of the Industrial Strategy and sector plans.
As the Industrial Strategy green paper highlights, accelerated technology adoption, particularly beyond our frontier firms, could drive significant productivity gains. While the UK ranked fifth out of 133 countries in the World Intellectual Property Organisation (WIPO) 2024 Global Innovation Index, it ranked 31st in knowledge absorption.
The review will identify the barriers businesses face when adopting both established and novel technologies, building from existing analysis, industry insights, and the forthcoming AI Opportunities Action Plan. It will provide practical recommendations on how the government can work with businesses to address these obstacles, with a focus on the 8 growth-driving sectors identified in the Industrial Strategy green paper.
This call for evidence is an important step in ensuring that the government can benefit from the collective wisdom and experience of business, academia, consumer groups, trade bodies, and devolved governments.
The Industrial Strategy green paper covers the following growth sectors:
- advanced manufacturing
- clean energy industries
- creative industries
- defence
- digital and technologies
- financial services
- life sciences
- professional and business services
Each growth sector has a vital part to play in the growth mission but may require different approaches and priorities. The government wants to hear from the full breadth of these growth-driving sectors, as well as those offering new or different perspectives, including the academic community and consumer groups.
In developing the review’s recommendations, we will be guided by evidence and grounded in understanding the opportunities and challenges different sectors face with technology adoption and the role that the government can play in creating the conditions for success. As such we welcome responses setting out any relevant analysis or data that could help develop the review’s recommendations.
Through this call for evidence, the government aims to gather additional evidence relating to:
- what barriers are most significant to technology adoption within the 8 Industrial Strategy sectors;
- what factors would make the biggest difference to growing and enhancing technology adoption within the 8 Industrial Strategy sectors over the next 10 years.
After the call for evidence
The GCSA and the NTA will work closely with the Technology Adoption Review team to recommend options and report to the Chancellor and the Secretaries of State for the Department of Science, Innovation and Technology and Department of Business and Trade. The recommendations will then feed into the Industrial Strategy.
Call for evidence questions
Note, questions can either be answered from a whole economy perspective or with a specific focus on 1 of the 8 Industrial Strategy sectors. These are:
- advanced manufacturing
- clean energy industries
- creative industries
- defence
- digital and technologies
- financial services
- life sciences
- professional and business services
We also welcome commentary from the point of view of technology, particularly if comparison can be made between how different sectors have adopted it, and what that might tell us about ‘what works’ when it comes to encouraging adoption.
The current situation (questions)
1. Why does the UK rank lower than some OECD countries in technology adoption?
What dynamics exist in the UK, but not in countries such as Germany or Estonia that might explain it?
2. What are the biggest barriers to technology adoption in your sector and/or across sectors?
Does business size and geographic location affect how firms are impacted by these barriers?
3. What is the evidence for technology adoption across different sizes of businesses?
4. What are the differences in technology adoption rates in the nations and regions of UK and how can they be explained?
5. Do technology adoption rates differ at a worker level, including by gender, ethnicity or other protected characteristics? If so, does this have wider effects on professions and sectors where a large proportion of that workforce comes from a lower technology adopting group?
Existing measures (questions)
6. How effectively does the UK support the adoption of new technology? What could be improved in your sector and/or across sectors?
7. What current policies and/or initiatives support technology adoption in your sector and/or across sectors?
Have these policies been successful at supporting technology adoption and why? Examples from the following categories are of interest:
- national government
- devolved, regional and local government
- industry bodies
- business-led, including individual companies
8. The availability of skilled employees is a significant enabler of technology adoption. What are the main skills needs across the economy/in your sector required to drive technology adoption and where are the most significant gaps?
Where there are gaps, how can the UK effectively up/reskill domestic workers for roles that involve technology adoption? This could focus on any of the following groups:
- leadership (management, C-suite)
- IT experts (e.g. requiring technical expertise with university or equivalent-level qualification)
- lower technical ability adoption skills (e.g. addressed via re- or upskilling programmes, typically shorter than for experts)
- all (e.g. safety, ethics and governance)
9. What international examples of technology adoption have been most successful, specifically from countries with economies similar to the UK and/or any novel or effective approaches from other countries?
Future action to drive technology adoption (questions)
10. What are the top two transformational technologies for productivity in your sector and/or across sectors and why?
11. Where is government uniquely placed to drive technology adoption?
Answers could focus on, but need not be restricted to, the following categories:
- financial support packages
- growth hubs/local delivery
- awareness campaigns
- skills packages
- procurement
- convening stakeholder groups to unlock key challenge areas
12. Where is industry uniquely placed to drive technology adoption in your sector and/or across sectors? Where could industry go further to support the objectives of this review?
13. What opportunities are there for government and industry partnerships to drive technology adoption in your sector and/or across sectors?
14. What approach or policies should government consider to accelerate technology adoption across the economy and/or within sectors?
Further information (questions)
15. If there is other relevant evidence/information on this topic please submit as necessary.
How to respond
Please provide submissions and evidence by 11:59pm on Friday 14 February 2025. Submissions of evidence should be no longer than 5 pages.
If you would like an alternative way to respond to this call for evidence, contact us at: techadoptionreview@go-science.gov.uk.
Evidence will be reviewed thereafter by the review team. If further information or clarification is required, the review team will be in contact with you.
Confidentiality and data protection
Information you provide in response to this consultation, including personal information, may be disclosed in accordance with UK legislation (the Freedom of Information Act 2000, the Data Protection Act 2018 and the Environmental Information Regulations 2004).
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