Source · National Audit Office

Innovation in transport

Stronger support for innovation in transport sector can unlock economic, environmental and consumer benefits.

Published: 18 May 2026 Recommendations: 9 Type: Value for Money Department: Department for Transport
Dept: Department for Transport Topics: Business and industryScience and innovationTransport nao.org.uk →

Recommendations

9 items

Recommendation 1

Addressee: Department for Transport · Source location: Page 9, paragraph 15, point a, first bullet point

To improve its management of activities to support innovation, DfT should:
strengthen its process for prioritising its funding across the different outcomes it is seeking from its innovation activity, including being clear how those outcomes will enable it to achieve its departmental objectives,
and then monitor alignment against this

Response position: Under consideration

Delivery: No implementation status recorded

Recommendation 2

Addressee: Department for Transport · Source location: Page 9, paragraph 15, point a, second bullet point

To improve its management of activities to support innovation, DfT should:
define, embed and use its risk appetite for innovation activity, to guide investment decisions and actively manage and balance the risk profile across its innovation activity

Response position: Under consideration

Delivery: No implementation status recorded

Recommendation 3

Addressee: Department for Transport · Source location: Page 9, paragraph 15, point a, third bullet point

To improve its management of activities to support innovation, DfT should:
decide how it can more actively manage its innovation activities within the
department ? whether through a managed innovation portfolio or other appropriate governance mechanisms

Response position: Under consideration

Delivery: No implementation status recorded

Recommendation 4

Addressee: Department for Transport · Source location: Page 9, paragraph 15, point a, fourth bullet point

To improve its management of activities to support innovation, DfT should:
ensure that its approach to monitoring and managing its innovation activity is fully supported by appropriate management information.

Response position: Under consideration

Delivery: No implementation status recorded

Recommendation 5

Addressee: Department for Transport · Source location: Page 9, paragraph 15, point b, first bullet point

To assess the effectiveness of its support to the innovation system across its wider policy instruments such as regulation, procurement, commercial influence, and partnership at a transport mode level, DfT should:
support more thematic monitoring and evaluation frameworks to capture evidence of impact beyond individual projects

Response position: Under consideration

Delivery: No implementation status recorded

Recommendation 6

Addressee: Department for Transport · Source location: Page 9, paragraph 15, point b, second bullet point

To assess the effectiveness of its support to the innovation system across its wider policy instruments such as regulation, procurement, commercial influence, and partnership at a transport mode level, DfT should:
decide how it will assess the impact of its innovation activities towards its departmental objectives of growth and improving transport for users.

Response position: Under consideration

Delivery: No implementation status recorded

Recommendation 7

Addressee: Department for Transport · Source location: Page 10, paragraph 15, point c

To ensure optimal collaboration and avoid duplication, DfT should build on the success of the Transport Research and Innovation Board to put in place effective coordination of innovation activity across DfT and its
arm?s-length bodies.

Response position: Under consideration

Delivery: No implementation status recorded

Recommendation 8

Addressee: Department for Transport · Source location: Page 10, paragraph 15, point d, first bullet point

To maximise the impact of its innovation activity, DfT, and its arm?s-length bodies, should identify ways to address any barriers to the adoption of the innovations they fund, including:
better supporting progression from trials through to final products

Response position: Under consideration

Delivery: No implementation status recorded

Recommendation 9

Addressee: Department for Transport · Source location: Page 10, paragraph 15, point d, second bullet point

To maximise the impact of its innovation activity, DfT, and its arm?s-length bodies, should identify ways to address any barriers to the adoption of the innovations they fund, including:
ensuring that contractual and procurement processes encourage rather than deter suppliers of innovation, particularly smaller companies.

Response position: Under consideration

Delivery: No implementation status recorded