At a time when we urgently need growth drivers & fiscal savings, this is relatively low hanging fruit. We don't need to be forefront of innovation, we simply need to follow proven approaches to scaling existing innovations. Read the full report here /ENDS www.bcg.com/publications...

Solving these isn't impossible. In fact, we detail a series of case studies where other developed economies have found solutions to just these sorts of problems. See for example this on US & Singapore's innovation pathways 5/

So, what is stopping us doing this now? The barriers won't surprise you, they are common ones we hear about across the NHS & public sector more widely. Together though these have created a system which actively discourages scaling innovation 4/

The problem then isn't necessarily developing innovations themselves but scaling & adopting them. To better understand the specific benefits we looked at 4 high impact conditions & the benefits from scaling existing approaches already used elsewhere 3/

We know the UK has great universities & research institutes but we struggle to translate this into improved patient & commercial outcomes. From 2015-23, Denmark saw 13% growth in its biopharma sector while US’s healthtech & medtech sectors grew 7%. Across these UK grew 5% 2/

Yes very much agree, I was sharing your frustration of the parochialism! For me that convo should start from big picture what we need & then a detailed analysis of what supply chains across Europe (incl UK) need to deliver it. I fear current convo on funding pots & legal architecture is too narrow

Let's start by thinking about what Europe needs then how best it can be implemented. The early signs on this are not great. Both sides seem to be stuck in their same old positions. German approach gives some hope. But I fear both EU & UK are some way from common market Martin hopes for (3/3)

This issue is ultimately too big & too important for either side to get caught up in their usual navel gazing. It requires a fresh, strategic discussion. Yes EU law will underpin much of it, but it shouldn't be the starting point. Form should follow function. (2/3)

Ultimately, if we want to invest more in a sustained way & meet shorter term targets on growth/energy transition we need to build capacity. Just letting chips fall where they may is unlikely to lead to optimal outcomes. Read full report below. 9/ ENDS www.bcg.com/united-kingd...

Thankfully, there are steps that can be taken to smooth demand & strengthen supply chains. Needs action from public & private sector. Part of this is a strategic sense of priorities, but also doing some of basic better in the industry. 8/

Third, projects will face new forms of complexity (be that technical, regulatory, political or economic). We expect next 5 years to see more large projects. Which are inherently more complex due to all the moving parts & long supply chains. 7/

Second, there is a mix of chronic & acute skills shortages. e.g. number of welders employed has declined by 40% in 20 years. While we estimate the grid upgrade will require 3x-4x the number of high voltage line workers currently in the UK. 6/

For some this will sound familiar. In the past demand hasn't materialised & supply has managed to respond to some extent. But there are 3 reasons why we think this time is different. First, we haven't seen an uplift of this size across so many sectors since post war period 5/

Why won't market alone solve this? There are a mix of market failures & inefficiencies, as well as the fact that some of these markets are heavily regulated. Price signals do not reflect consumer or national demand/need. 4/

This will lead to significant overlaps in terms of demand for skills & resources, both in timing & location. We've mapped the demand below. Again a big opportunity for many areas to see more investment, but they need to be set up to deliver 3/

Key question is whether supply chains can deliver – right now they can’t. Our supply chains have degraded due to years of underinvestment & feast/famine approach. Some sectors (renewables, water, airports) could see huge uplifts 2/

Its also turned out to be one of the best run projects. Cost and time overruns well below the norm. Impact on bills lower than expected. Financing approach with government contingent guarantees also a very interesting model to consider (got more on all this in our paper coming up next week).

More broadly, there is some excellent work coming out from various thinkers & organisations on the 'pro-growth' side. I just wish there was bit more emphasis/focus on how we can actually deliver things on the ground. Also on the role the private sector can play in taking action (2/2)