Innovation

The pandemic has pushed businesses to innovate, pivot to other sectors, and change their processes to survive.

Accelerated innovation will be vital to the Midlands’ economic recovery, driving productivity through the creation, development and commercialisation of ideas. In addition, the major challenges of the UK’s exit from the EU and achieving net zero will only be overcome by a healthy level of innovation.

• The proportion of firms that are ‘innovation active’ (meaning they engaged in specific innovation activities such as new product / process, or new forms of organisation, concepts and strategies) in the Midlands is higher than in England as a whole – 48.6% of West Midlands firms and 46.8% of East Midlands firms compared to 44.9% across England in 2018-2020.
• The Midlands makes up 15.6% of the UK’s private sector R&D, with firms investing over £4.2bn annually. Despite this, just 7% of government spending on R&D is in the Midlands.
• Government expenditure on R&D (GERD) in the Midlands in 2018-19 included £232m Innovate UK funding, £664m UKRI funding and £230m Research Council funding.