Tyler Cowen is looking for science and innovation to the create next decade's low hanging fruit

In his latest ebook Tyler Cowen argues that with much of its low hanging fruit gone, America needs to innovate its way back to growth. Median income and productivity, he states, can only rise in the long-term through technology breakthroughs that help create a step change in productivity and with it bring jobs and increased prosperity. In reading his thesis, I recall a recent radio interview I listened to with Tim Smit, the founder of the Eden Project, in which he stated that in his view the answer to today's growth challenge would be to not stand still, but be a generation that does the right thing and invests in tomorrow's technologies. Both Tyler and Tim are broadly of the same opinion that innovation is the way back to growth. Not discounting trimming out waste but making selected investments for the medium-term now. An interesting polemic, please see link here

Tech City, great idea to promote a cluster...

You may not have heard of Tech City, but you may have heard of Silicon Roundabout. A cluster of high tech companies that have emerged around Old Street. Within the space of two years tens of high tech businesses have found that being near each other in a Bohemian enclave a stone's throw from the city can be a huge advantage. The UK Government is now keen to weave into this free-forming innovation city its post 2012 strategy and build "a world leading leading Tech City to rival Silicon Valley", notice the rebrand, in full "East London Tech City".

The UK government's attempt to develop a fertile ecosystem for UK Tech Industry should be applauded. However, Silicon Valley not only has the entrepreneurs, it is also a renowned innovation capital that attracts early stage venture funding, the life blood needed to support a sector that lives off generating new ideas hungry for capital. Therefore the UK, according to the Work Foundation 2010 research, needs to ensure the cluster produces the ideas but it also matches them with venture funding. After all, I have always thought of innovation as a good idea + commercial realisation.

With the aim to kick start and match with private funding the UK Government has pledged £200m of seed capital. Its initiative may not be without teething issues. There have been some comments, according to the FT, that the launch in November had been a bit rushed with some companies, according to Tim Bradshaw's article, not being aware of the Government's plans ahead of announcement. Whether or not that is the case, overall it is surely a huge positive that the Government wishes to promote the sector, and its ambition is to follow Silicon Valley's lead is good news. A cluster once started should attract organisations and talent of similar mindset and their proximity should create a positive feedback loop, hopefully with UK Government backing this can continue to be the case and it grows into a national asset.

To summarise key parts of the UK Government's proposal from Tim's article, they include 'Entrepreneur Visas', IP law review, better broad band, financial advice for start-ups, facilitating early stage funding and investment in the area from Facebook, Google and Intel. In short, a good positive step forward for UK Tech sector. Please see www.ft.com/silicon for the original source article.

Source: Tim Bradshaw FT 29th January 2011.

The Work Foundation say the UK needs an 'innovation eco-system' to rebalance the economy

This morning I attended an early breakfast meeting hosted by the Work Foundation in London.  The meeting launched the latest Work Foundation Statement [of work], presenting the argument that by 2020 the UK needs to have developed a more innovative, creative and entrepreneurial economy.  An economy that moved away and re-balanced from, what their report refers to as, the previous ‘credit-boom fuelled economy’ powered by financial services, property and construction.  Both Will Hutton and Ian Brinkly, the research lead, hosted the event unveiling their view that the UK needs to develop an ‘innovation eco-system’.

Given we are in uncertain times, and weeks from an election, the Work Foundation are doing exactly what they are designed to do and that is presenting some well researched and formulated guidelines (policy levers) for our economy so that the next Government (whichever party, or combination of parties) can take hold of and move forward.  UK businesses can follow and that we, the workforce, can hopefully align to - to help map out our own innovative, creative and entrepreneurial work journey over the next ten years.

One of the key points made this morning, was the ‘need’ for our institutions to unlock access to private long term capital.  Will Hutton stating the somewhat alarming statistic that only £100 billion of bank balance sheet debt, is invested in businesses, the large majority being retail mortgage debt thus suggesting that UK businesses and therefore UK innovation is starved of funds in the current system.  A hunger that hopefully the new ‘innovation eco-system’ would address – getting investment into the hands of those that are innovate, creative and entrepreneurial.

The report is due out tomorrow and will be published on their website www.theworkfoundation.com. To wrap up, Ian Brinkly posed the question of what was missing from their planned research through to April 2011?  My own view is that on top of the suggested low carbon economy, creative and cultural section in the innovation eco-system, high tech manufacturing and services (what the Work Foundation refer to as Manu-Services) and other report topics, I would hope that Work Foundation take a strong look at the social networks and how they can be leveraged, to amongst other things, signal change in fast moving markets and stimulate and tap into innovation both inside and outside an organisation's firewall.  I hope the resulting ‘innovation eco-system’ has at its core an ability to harness the value of networks and self-organising systems to help keep UK business at the forefront of innovation, creativity and entrepreneurship not just in 2020 but ongoing.