‘Magpie firms’ can boost UK economy
THE economy could be boosted by £100 billion and income inequality reduced if more firms embraced the best technology, the country’s biggest business group claims.
The CBI said companies failing to use technologies and better management practices often struggled to improve workers’ skills or allocate money to innovation.
The Government was urged to use its industrial strategy to promote more take-up of areas such as mobile technology, cloud computing and cyber security.
Carolyn Fairbairn, the CBI’s director general, said: “While the eyes of the business world can often be on ‘the next big thing’ in cutting-edge technology, too many firms are missing out on what’s right under their nose. Failing to adopt the nuts and bolts technologies of today is leaving a yawning gap in productivity and pay between businesses.
“In too many areas of diffusion we struggle against our international competitors, with more workers being employed by less productive firms here than in France and Germany, while by some markers we are almost a decade behind the Danes.
“The Government’s role is to create the right backdrop for firms to invest and it’s then up to businesses of all sizes to act boldly and take up the challenge.
“The impact could be a £100bn plus uplift in the economy and a narrowing of income inequality by 5%.
“At a time when the public purse is tight, encouraging new technology take-up is one of the most effective routes to raising productivity.”
COMPANIES ARE FAILING TO USE TECHNOLOGIES