The Manila Times

British strategy aims to fix low productivi­ty

- AFP

LONDON: The British government unveiled an industrial strategy focused on research and innovation on Monday, in an effort to boost poor productivi­ty and to shield the economy from Brexit.

“As we leave the European Union we need to raise our game at home and on the world stage,” business minister Greg Clark announced in his 255-page consultati­on paper.

The strategy has been in discussion for 18 months since Theresa May became prime minister, and aims to make the UK the world’s most innovative nation by 2030.

- - sibility, gave a pessimisti­c outlook for the UK’s productivi­ty to coin Hammond’s budget last week.

Monday’s strategy re-iterates the government’s target of increasing investment in research and developmen­t from 1.7 percent of GDP to the OECD average of 2.4 percent.

It proposes also £725 million ($970 million, 811 million euros) of investment for an existing Industrial Strategy Challenge Fund, currently at £1.0 billion.

Maths, digital and technical education will receive £406 million, while £200 million will be set aside for boosting internet connectivi­ty in local areas.

The paper draws attention to “grand challenges” the UK must intelligen­ce and an ageing society.

“This announceme­nt shows on the horizon,” said Carolyn Fairbairn, director- general of the UK’s biggest business lobby group, the CBI.

But ministers are “missing a trick if they don’t listen to the fac leader of British union umbrella group the TUC.

“A key reason behind the success of Germany’s industrial strategy is that government, business and unions all sit down together. And plan decades ahead,” she said.

“The UK should be following this blueprint.”

Two pharmaceut­ical companies meanwhile boosted the strategy’s emphasis on promoting the life sciences industry, alongside constructi­on and the automotive sector, by announcing key UK investment­s on Monday.

American pharmaceut­ical company MSD said it will open a new research facility and headquarte­rs in London, with capacity to support 950 high- skilled jobs, while German group Qiagen will invest in a genomics and diagnostic­s campus in Manchester, northwest England.

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