In the latest survey, the vast majority of IoD members favored the development of a meaningful industrial strategy aimed at setting specific long-term priorities for the UK economy.
Less than 10% of members felt that economic development in the UK should be left entirely to market forces.
The debate over industrial strategy is taking place at a time when the UK’s main competitors are pursuing unprecedented measures aimed at stimulating strategic sectors and industries. These include inflationary reduction laws, the CHIPS Act in the United States, and the European Union’s proposed Net Industry Zero Act.
However, most IoD members do not believe that UK industrial policy should focus on targeting specific sectors, companies or ‘national champions’ – as is common in other countries. Their priority is an industrial strategy focused on strengthening the UK’s capabilities as a center of excellence for innovation, research and development and green investment. They also believe there should be a strong focus on developing skills and infrastructure.
Commenting on the findings, Dr Roger Parker, Director of Policy at the Institute of Directors, said: “The latest UK government policy priority has been to restore economic and financial stability, and to lay the groundwork for a return to economic growth. However, this is not enough to maintain the competitiveness of UK business. Business leaders clearly see the value of a longer-term policy framework that has innovation at its heart, and that enables innovations to be commercialized in the UK.
“Experience suggests that UK policymakers are not suited to ‘picking winners’, either in terms of firms or sectors. However, they can create a stable policy ecosystem that allows the UK to stand out in terms of its ability to nurture innovative technologies and business models. This can be achieved. By funding and encouraging world-class research, and by creating incentives and regulations that encourage the most innovative companies to expand in the UK and stay here.”