archy13 - stock.adobe.com
Why the government should still bet on DSIT’s five key technologies
When the Conservative government launched the Department for Science, Innovation and Technology, it identified five key technologies for UK investment. The new Labour government must continue this plan
The UK tech sector is a modern economic success story, with its gross value add (GVA) contribution to the economy rising by over 25% from 2010 to 2019 and now exceeding £150bn.
This builds on one of the greatest technology and innovation heritages in the world, from Turing’s computer to DNA sequencing - and more recently hosting a highly sophisticated AI industry, ranking third globally and first in Europe.
With this context, it is surprising that only last year the UK government created the Department of Science, Innovation and Technology (DSIT) – the UK’s foundation from which “to deliver the most innovative economy in the world” – and its complementary Science and Technology Framework. This was strongly welcomed by the tech sector, finally giving a strong government voice for tech and innovation.
A key component of DSIT’s Science and Technology Framework was the highlighting of five key technologies - artificial intelligence (AI), quantum, engineering biology, semiconductors, and future telecoms. These key technologies are underpinned by the National Science and Technology Council, which reviews this list to ensure the UK keeps pace and continues to develop global competitive advantage.
These technologies (barring future telecoms) have their own strategies, such as the National Quantum Strategy, that recognises the specific path these technologies will need to embed their impact into UK society and economy.
Despite the different barriers, commercialisation pathways, and industry impact, each of these chosen technologies all require the same key to unlock success - consistency. It is critical the new government continues to support the five technologies, developing strategic advantage, building resiliency, and using the tide of emerging technologies to lift all boats.
Case study: quantum commercialisation
The UK struggles to commercialise its innovations. As a 2023 report from the Tony Blair Institute highlights, the challenge is not in research or ideas - the UK has a strong emerging tech startup scene and has more tech unicorns than Europe. The challenge is showing businesses that they can scale long term and internationally from the UK.
Quantum commercialision will be critical to the UK tech sector in the coming years. The UK quantum industry contributes £1.7bn to the UK economy and has grown by 81% since 2013.
There are a range of commercial applications which could deliver even more significant benefits to the UK economy if they can be rolled out effectively. However, as with any emerging technology, this process can be extremely complex, facing several technical, skill-based, and business barriers, with the need for sustained investment and support before profits can be made. As it stands, any end-users remain in the proof of concept phase of quantum application.
“ The UK struggles to commercialise its innovations. The challenge is not in research or ideas – it is showing businesses that they can scale long term and internationally from the UK.”
Laura Foster, TechUK
The National Quantum Strategy recognises this challenge. To mitigate the commercialisation gap, it identified several levers to support this burgeoning industry. This includes effective government procurement and, most critically, the launch of the five quantum missions. These missions include enabling activities to support commercialisation and user adoption across key industries such as healthcare.
The National Quantum Strategy assures a strong decade of UK leadership in quantum technologies. Turning this leadership to commercial success when the time is right will require consistency. This patience could reward the UK with a thriving quantum economy with UK businesses at the centre.
Case Study: semiconductors
Semiconductors – or “chips” - are present in almost every device we use, from day-to-day consumer electronic devices, vehicles, healthcare tech and defence technology. Furthermore, they underpin the key technologies that are shaping today’s world and tomorrow’s possibilities, such as AI.
UK industries are reliant on the global supply of semiconductors. A supply shortage that started in 2020 was estimated to have disrupted global GDP growth by 1% in 2021. Alongside economic insecurity, disruptions in supply chains can cause potential harm to essential infrastructure and risks to national security. As such, building a resilient semiconductor supply chain is of critical importance for many governments around the world, and this is reflected in fierce global competition.
Last May, the UK government released the National Semiconductor Strategy. This plan committed to build areas of world-leading strength in semiconductor technologies by focusing on strengths in research and development (R&D), design and intellectual property (IP), and compound semiconductors. The strategy underscored a commitment to invest up to £1bn over the next 10 years, comparatively less than strategies in the US, China, EU and South Korea.
Read more on UK tech innovation
- UK and German governments sign up to greater R&D collaboration - Declaration aims to build on joint R&D efforts, as well as support artificial intelligence, quantum computing and clean tech.
- TechUK calls for government to introduce ‘industrial strategy’ for AI - Trade group TechUK publishes blueprint calling for winner of next election to boost tech startups, digitise government services and accelerate technology R&D.
- UK government expands investment in 5G and 6G R&D - UK universities awarded £28m to develop next-generation 6G network technology, and an £80m fund will help set up a lab for testing network equipment, as government aims to boost telecoms infrastructure.
It is sometimes suggested that the UK has missed the boat on semiconductors. However, this strategy recognises that in such a critical and globally complex supply chain, and with so many current and future industries reliant on this technology, the UK can’t simply miss the boat. In fact, there isn’t just one boat.
There are still many areas in the semiconductor supply chain where the UK can be critically important. While the UK cannot be a world leader in all aspects of semiconductors, it can - and must - lean into specialisms where it can be internationally competitive, building resilience and leverage within international partnerships.
The UK is not starting from zero. We have world-leading capability in compound semiconductors, and in design and IP. But, as a recent Institute for Manufacturing Study highlights, there are still critical gaps in underscoring these UK strengths.
The new government should take up the mantle of the National Semiconductor Strategy to deliver an ambitious and co-ordinated plan of action across the recommendations, enabling the UK semiconductor industry to thrive. It must act quickly on delivery and utilise the wealth of knowledge, expertise, and potential that the domestic semiconductor industry has.
In a recent open letter to the government, TechUK, alongside members of the Chips Coalition, called for the creation of a National Semiconductor Institute. This institute will play an important role developing a strong co-ordinating voice for the UK semiconductor industry, creating value from UK innovation. The National Semiconductor Institute was announced before the General Election, but the lack of clarity on its development indicates its future remains uncertain.
The merits of the quantum and semiconductor communities in the UK, built by decades of pioneering research across UK universities, their spinouts, and partnerships with industry, is something to be applauded and supported. That requires consistency, and that is one thing that remains certain.
Laura Foster is associate director for tech and innovation at TechUK.
