Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Accepted
DSIT identifies UK research strengths lacking commercial scale-up through data analysis and sector plans.
Conclusion
We asked if there were specific fields in which the UK is strong scientifically but where we are less good as a country at scaling it up.70 In correspondence following the session, DSIT explained that the Government Office of Science runs a technology insights unit that produces the Science Power Index, which measures international capabilities across the innovation lifecycle – from research to scale-up. DSIT stated that it published an Innovation Clusters Map, to provide as comprehensive a picture as possible of firm-level innovation activity in the UK. DSIT also stated that UKRI undertakes and supports analyses of areas where we have strong research activity, but where commercialising and scale up is lacking.71 DSIT told us said that in fields where the Government Office of 62 Q 60 63 Q 62 64 Q 61 65 C&AG’s Report, para 1; Q 32 66 Q 35 67 Q 2 68 Qq 12-13, 31 and 39 69 Q 12 70 Q 85 71 Letter from DSIT, 18 June 2025 16 Science has identified opportunities, it has developed sector plans that seek to build on the UK’s strategic advantage. DSIT pointed to quantum technologies and engineering biology as two areas of innovation where companies are starting to grow, but where there is scope to achieve huge impacts.72
Government Response Summary
The government agreed with the conclusion, detailing how DSIT and UKRI draw on existing data sources (e.g., Science Power Index, Innovation Clusters Map) to identify areas for scaling innovation and leverage the Industrial Strategy's integrated approach.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2026 6.2 DSIT will publish allocations to UKRI in Autumn 2025, and UKRI’s allocations will be published by Spring 2026. 6.3 DSIT and UKRI will draw on a variety of data sources to understand where to have the greatest impact on scaling innovation domestically. This involves not only assessing where there is strength in research, but also where there are existing or nascent industry strengths, absorption capacity and identifiable market failures. 6.4 UKRI has recently launched the first round of the new discipline agnostic Proof-of-Concept funding opportunity. Understanding the full impact will only be possible after the first rounds of projects conclude and are evaluated (evaluation dates not yet confirmed). Early insights will contribute to allocation decisions. 6.5 Scaling innovation is not a linear pipeline from research to scale-up but instead requires an integrated approach across different actors (both private and public) that provides the right policy environment for innovative firms at every stage of their growth journeys. The government’s Industrial Strategy set out how we plan to achieve this. This includes better engagement and alignment between UKRI, the British Business Bank, the National Wealth Fund and other public finance institutions through the new Strategic Public Investment Forum, plus more effective use of public procurement to buy from innovative suppliers, and removing regulatory barriers to scaling. 6.6 In deciding the aforementioned allocations, DSIT will consider the impact on the financial sustainability of university research. DSIT uses analyses of Transparent Approach to Costing data, as well as insights and analyses provided by UKRI, to understand the financial challenges universities face within the R&I system.