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Devolving innovation: Britain bets a billion pounds on its regions

Devolving innovation: Britain bets a billion pounds on its regions

The Prime Minister announced in Manchester the first devolution of innovation funding in England: mayoral authorities will receive dedicated R&D money…

--- The context --- Britain pairs elite universities and a formidable scientific base with an old frustration: too many discoveries are born in its laboratories and become great companies somewhere else. In a speech at the Innovation Nation Summit in Manchester, the Prime Minister put that problem at the heart of his project, arguing that the next generation of breakthroughs should not only be discovered on British soil but developed, scaled and commercialised there. The thrust of the message was territorial: innovation, he said, must reach every corner of the country and deliver growth in every postcode. --- The facts --- The headline change is the devolution of innovation money: for the first time, established mayoral strategic authorities in England will receive dedicated research and development funding for later-stage innovation, with direct power to back the most promising opportunities in their areas and build on local strengths. It is a first step: under the Cabinet statement on rewiring the state, local leaders are set to receive a substantially increased share of that funding, extending beyond the authorities already established. That funding will sit alongside new Good Growth Funds, a single, flexible, long-term budget for local leaders to invest in jobs, investment and living standards. The Government will also commit £1 billion through the national research body over the next four years to support high-growth innovation clusters in the Industrial Strategy's priority sectors. The speech included a national mission to defeat dementia and tasked the Government's regional team with building partnerships between clusters across the eight growth-driving sectors, starting by connecting the Northern Growth Corridor with the Oxford to Cambridge Growth Corridor in life sciences, digital technology and advanced manufacturing, building on the Cambridge-Manchester collaboration. --- The positions --- The Government argues the old model concentrated too many decisions about regional innovation at national level, and that giving each place control over its economic future will unlock investment, businesses and better-paid jobs. Academia and business broadly welcome the direction, with a caveat the speech itself acknowledges: innovation needs more than research money — skilled workers, affordable space, modern infrastructure, access to finance and strong links with universities. --- What remains unknown --- Still to be settled are the criteria for dividing funds between regions, the timetable for transferring the larger share of funding, and how each cluster's success will be measured. The content of the dementia mission and the practical mechanics of the corridor partnerships also remain undefined. --- Unanswered questions --- Will funds be allocated according to regional need or according to the research excellence already concentrated in a few places? What will stop the new money from reproducing the concentrations it claims to correct? How will local management avoid adding new layers of bureaucracy to the ones already holding businesses back? --- EPM analysis --- The diagnosis is right: Britain researches brilliantly and commercialises halfway, and those who know the ground usually decide better than a ministry in the capital. The Good Growth Funds promise the flexibility rigid budgets never delivered, and cluster partnerships could give each area the scale to compete for international investment. The familiar risk is money handed out without measurable results, turning devolution into territorial patronage. With transparent criteria and real accountability, the country can start retaining the value of what it invents; without them, this will be an ambitious announcement with a new map and old results. 📌 EPM Take: In EPM's view, taking innovation funding to the regions is the most sensible industrial decision the British Government has made in years: talent is spread across the whole country, but the money to scale it is not. Giving mayors real power to back their strengths could break dependence on the capital and turn discoveries into well-paid jobs where they were born. Success will demand clear criteria, measurable results, and ensuring that neither the dementia mission nor the cluster partnerships end up as headlines. If the plan stops at handing out funds, the gap will remain intact.
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