Source · Select Committees · Science, Innovation and Technology Committee
Recommendation 35
35
Accepted
The UK’s strengths in cutting-edge science have been hampered by low rates of technology and...
Conclusion
The UK’s strengths in cutting-edge science have been hampered by low rates of technology and innovation adoption, particularly among SMEs and in non-tech sectors. This is the low-hanging fruit of innovation policy: the investment needed to support businesses in adopting technologies could have a transformative economic impact in regions and sectors where adoption has been low. (Conclusion, Paragraph 113) 48
Government Response Summary
The government agrees with the observation, detailing significant investment to expand the Made Smarter Adoption programme with £99 million from 2026, extend it to new sectors, implement the SME Digital Adoption Taskforce recommendations, and commit £52 million to new Robotics Adoption Hubs to improve technology adoption.
Government Response
Accepted
HM Government
Accepted
The government agrees with the importance of diffusion and adoption of innovation and technologies across the UK. That is why we are expanding the Made Smarter Adoption programme, committing up to £99 million from 2026 to support a further 5,500 small and medium-sized manufacturing businesses to adopt new technologies, and extending this proven model through a dedicated scheme for the Professional and Business Services sector. Studies consistently demonstrate the UK’s productivity gap, citing low and volatile investment, skills mismatches, and poor diffusion of technology and innovation.3 Small and Medium-sized Enterprises (SMEs) in particular face barriers adopting new digital technologies, including a lack of information, skills and resources.4 We are working to tackle these issues by implementing the ten recommendations set out by the SME Digital Adoption Taskforce, including by bringing industry together at roundtables with No.10 to collaboratively deliver digital adoption support for small businesses, and running local-level SME Digital Adoption pilots. We will be publishing an update in the Spring. This work sits alongside support already available to help companies adopt digital technologies such as AI, including the Digital Catapult, Hartree Centre and the Cyber Action Toolkit from the National Cyber Security Centre. To drive widespread diffusion and uptake specifically of AI, across the workforce and SMEs in every region and locality, we will increase understanding of AI tools and capabilities, provide targeted support with integration, and improve access to upskilling materials. This will include working with industry to upskill 10 million workers by 2030 and expanding BridgeAI to focus on guidance and support for SMEs. Through Innovate UK, the government is also committing £52m to support a new national network of Robotics Adoption Hubs. Run by universities, businesses, or public sector organisations selected through open competition, these will provide companies of all sizes access to expert advice, live demonstrations, and networking opportunities. The window for applications has recently closed, with Hubs expected to be operational from the second half of 2026.