Innovation drives economic growth, but its benefits are not always shared equally, often leaving marginalised groups and economically lagging regions behind. This report explores how to make innovation more inclusive in the UK, emphasising the need for coordination among key actors and data-driven approaches. By defining upstream and downstream themes, it aims to create a shared understanding of an inclusive innovation ecosystem that benefits all communities and addresses regional disparities.
Innovation is generally considered a key driver of economic growth. However, its benefits are not evenly distributed, often exacerbating existing inequalities. Marginalised groups and economically lagging regions frequently lack the opportunity to participate in or benefit from the innovation economy. This report examines how to make innovation more inclusive, focusing on the United Kingdom (UK).
Over time, innovation policy has evolved from state supported research and development (R&D) to broader national systems of innovation. Recently, the emphasis has shifted to addressing social and environmental challenges through inclusive innovation. Despite the increasing focus, the concept of inclusive innovation remains ambiguous, with definitions varying across different disciplines. Generally, it aims to ensure that marginalised groups benefit from technological advancements (focusing on affordability, social inclusion, and capability building) and to decrease regional disparities. Therefore, effective inclusive innovation policies support strategies that enhance social, industrial or territorial inclusiveness.
While the UK has a strong R&D base, it faces significant spatial economic inequalities. Innovation is often concentrated in some regions like London and Manchester, leaving other areas behind. This concentration exacerbates regional disparities, highlighting the need for more inclusive innovation strategies. To address these disparities and create a more inclusive innovation economy in the UK, this report makes recommendations emphasising the importance of developing data-driven, coordinated approaches, enhancing local innovation ecosystems, and ensuring diversity in innovation practices.
Achieving an inclusive innovation ecosystem requires clear objectives, diverse funding streams, and policies that support participation from a broad range of stakeholders. Ensuring that the benefits of innovation are widely shared involves collaboration across sectors, alongside policies that address both upstream themes — such as governance, R&D investment, and diversity in innovation — and downstream themes like supply chain development, product diffusion, and financial returns. To support these efforts, coordinated actions are also needed at all levels of government. By implementing these approaches, innovation can become a driving force for more equitable growth, ensuring that all regions and communities can participate in and benefit from the opportunities it creates.
This work was supported by The Productivity Institute which is funded by the Economic and
Social Research Council [grant number: ES/V002740/1].
