Innovate UK’s incoming interim chief executive, Stella Pace, is being encouraged to transform the £1.1bn-a-year innovation agency into a more investment-focused body, according to Cambridge University-based entrepreneur Euan Kirk.
Kirk, who also serves on the board of BAE Systems and heads Deeptech Labs in Cambridge, suggests Innovate UK should move away from its traditional grant-based model and instead make equity investments in strategically important technology companies. He says this shift would align the agency better with the government’s wider economic objectives, working alongside the British Business Bank to invest directly in innovative companies that are critical to national growth.
peace (pictured) He takes over from Indru Mukherjee, who led the agency for three-and-a-half years. Her term begins at a time of heightened scrutiny by the Treasury, which is reviewing the efficiency of public spending across all agencies ahead of the upcoming October budget. Innovate UK has recently come under fire for its handling of the Women in Innovation Awards, providing only half of the 50 promised grants.
Kirk criticized the current grant system as overly bureaucratic, suggesting that the complex process has given rise to a sub-industry of consultants who help start-ups secure grants for a fee, which he described as “burdening”. He called for the process to be streamlined and urged Innovate UK to build on its successes, such as its nine Catapult Centres, which support research and development across sectors such as cell and gene therapy, energy systems, and high-value manufacturing.
Innovate UK has already made great strides in this direction, leveraging venture capital alongside its grants. Last year, it matched £40m of grants with £123m of equity investments from its partners. However, Kirk believes a clearer strategy and greater investment in growth sectors is essential to unlock the full potential of the UK innovation ecosystem.
While Peace Corps takes over, the agency remains under pressure to demonstrate greater efficiency, having reduced its staff by 25% in recent years. Innovate UK claims that for every £1 of public funding it distributes, businesses receive £3.61 in direct benefits, further boosting the economy. However, Kirk insists the agency’s potential can be maximized by moving towards an investment-led approach.
Lord Patrick Vallance, the Science Minister, is currently seeking to find a permanent replacement for Mukherjee and a new head of UK research and innovation. The government’s research and development strategy remains focused on supporting major national initiatives, including accelerating economic growth, developing clean energy, and building a future-proof national health system.
Comments are closed, but trackbacks and pingbacks are open.