Former UK Prime Minister Gordon Brown has suggested that British households could see their income increase by £5,000 if the country's innovation intensity matched that of Sweden or Japan. This would also lead to a £150bn annual increase in national income, according to his calculations.
Mr Brown, who was Prime Minister from 2007 to 2010, highlighted the UK's strong research base, noting it is home to four of the world's top 10 universities and produces a significant proportion of global research papers and highly cited research. However, he expressed disappointment that only 36% of the British public believes the country is a world leader in science.
He emphasised the need for innovation to be at the forefront of government policy, particularly in the 10-year plan currently being prepared. Mr Brown identified challenges such as the UK's difficulty in scaling up startups into global success stories, with three-quarters of venture capital investment coming from overseas.
Solutions proposed include ensuring firms can access funding from UK investors, new incentives for investors, and public-private partnerships. Competition policy and a favourable tax regime, such as research and development credits, were also mentioned as crucial for fostering innovation.