The research, conducted by industrial and electronic solutions provider RS, found that while a universal 100 per cent of UK leaders agree that innovation is vital for competitiveness, this conviction is not matched by a shared sense of urgency or strategic action, as only 57 per cent of respondent said they see innovation as ‘key to business survival.'
To close the gap, proactive and strategic implementation that invests in essential technology infrastructure will be key. This disconnect is highlighted further when looking at European competitors, where a significantly larger portion of leaders believe innovation is key to survival (79 per cent of Italian and 74 per cent of French leaders). With half (50 per cent) seeing European businesses as its primary competition, this could undermine the overall competitiveness of the UK manufacturing sector, the researchers said.
According to RS, its research highlights systemic barriers that are hindering the sector’s ability to enact on innovation – across both culture and technology.
While the report reveals encouraging progress towards fostering a strong culture of innovation, 46 per cent of UK manufacturing respondents still report resistance to change as a primary barrier. This could explain why 34 per cent see their approach to innovation as opportunistic and ad-hoc. Technology is also holding them back, with only 10 per cent rating their tech infrastructure as ‘very advanced.'
To transition from opportunistic to long term strategic innovation, UK manufacturers are prioritising investment in the following technologies: IIoT – the industrial internet of things (43 per cent), cyber security (40 per cent), and advanced analytics (35 per cent).
In a statement, Mike Bray, VP of Innovation at RS, said: “The findings from our latest research suggest that many UK manufacturers are approaching innovation as an opportunistic pursuit rather than as a non-negotiable component of their long-term strategy. On top of investing in the right technology foundations, it is essential UK manufacturers shift their mindset on innovations role to maintain competitiveness across Europe.”
The study is based on a survey conducted by Walnut on behalf of RS surveying a total of 567 senior decision-makers across industrial sectors (manufacturing, energy and utilities, and construction) in three European markets (UK, France, and Germany) to gain insight into how innovation is helping businesses gain and maintain a competitive edge.
The full report can be downloaded via the RS website here.
