The Research & Development Society: From ideas to wealth

Forging the UK's AI Future - Consultation Begins

Tue, 30 Jun 2026 07:00:23 -0700

Over the past view months the Research & Development Society has been preparing the basis of its initiative on Forging the UK's AI Future, conducting its own research and consulting with industry experts. We are now ready to open up our work for review and critique from all who are interested with the release of the consultation draft of our report.

Read our top-level conclusions below:

Overall, the UK is well positioned to take a leading role in the future global AI economy. It has a well-developed infrastructure, a highly trained workforce and an excellent investment environment for new innovation. It is, however, still at risk of missing out on the depth of potential it holds if it fails to develop leverage against the interest of other international players.

First of all, the government’s talk of sovereignty needs to move beyond soundbites, there is some progress in this area in supporting UK companies, but it needs to be demonstrated across all of government. This may result in trade-offs of accepting lower international investment from leading markets like the USA and gambling on more unseasoned local firms when awarding contracts.

Pursuing this objective in an orderly manner will further require a much clearer picture of how the government imagines its future vision for the UK with regards to AI. It is unlikely that the final reality will perfectly resemble this vision, but its presence can inform initiatives across every department and ensure they are working towards the same objectives. This vision needs to consider the shape of the future UK technology markets, labour force and information environment at a minimum. While a “principles-based” approach to regulation can work, the defined...Read More

Unpacking The RDS Macro-Meso-Micro Model

Tue, 23 Jun 2026 06:00:44 -0700

In our last blog we outlined the need for new economic models that link government economic policy with the drivers of growth at a cluster and company level. Here we will provide more detail on our answer to this challenge, the RDS Macro-Meso-Micro Model.

The RDS growth model is based on global empirical data, supported by clustering analysis which identifies and groups the key variables in a structured way. The model elucidates the correlation between macro levers that are a key part of economic policy, and meso-economic vectors which are the drivers of growth for companies as established in the development of the Triple Chasm Model.

The key components of the RDS Growth Model are as follows:

1. Rigorous definition and analysis of the macro levers and sub-levers, based on extending the macroeconomic levers typically defined by fiscal and monetary policy. These levers go beyond the traditional levers usually used by macro-economists: and are defined to fully capture the mechanisms that influence industrial policy available to a government. These levers are:

Signalling
This is a critical overall lever because it sets the tone for how policymakers see their role in the management of markets, with all its consequences. There are 3 key sub-levers: ideological orientation, defining the governments core principles of industrial strategy; narrative that flows from this through the coherent integration of policy priorities and broader signalling in pursuit of clear goals; and finally, the quality and substance of the delivered messaging that contribute to the narrative.
Why we need a new model
Previous work by the RDS has identified several key challenges facing the Government when it comes to understanding and shaping intervention strategies to drive growth:
- Poor understanding of how innovations are commercialised, focusing on macro-economic approaches that lack the underlying insights into how growth is created and instead tracking the latest ‘technology fashions’
- A limiting bi-polar approach (focusing on technology and investment) which ignores the broader growth drivers (such as market space structures and regulation) that would facilitate a nuanced multi-polar understanding
- Nurturing a more holistic appreciation of funding sources that does not excessively rely on venture capital and private equity investment and understands how their importance shifts with maturity
The validity and applicability of current growth models is unsatisfactory, especially when it comes to understanding growth and shaping policy interventions. Virtually all growth models currently focus on the macro-economic layer with passing reference to the micro-economic layer.
The macro models in general reflect abstract, aggregate approaches based on simplified thinking underpinned by neo-classical Read More

The RDS Macro-Meso Policy Assessment Framework

Fri, 24 Apr 2026 07:00:07 -0700

The Research and Development Society has regularly made use of the Triple Chasm company's tools and frameworks, from its meso-economic vectors to its market space-centric value chains. Understanding how governmental policies impact these vectors, however, requires an extension of the model to incorporate macro-economic factors. To tackle this challenge the RDS has built a framework for linking the key macro-economic policy levers that national policymakers have control over, with the meso-economic vectors they hope to influence.

The RDS' Eight Key Macro-Economic Policy Levers

Our Macro-economic policy levers were chosen to account for all the key factors government has influence over that can influence innovation ecosystems. Any comprehensive government policy should consider how it makes use of all of these levers in its design and implementation. By linking these levers with Triple Chasm's Meso-economic vectors, we have produced a grid analysis tool for assessing how a policy platform is prioritising its different components.

Example Macro-Meso Assessment

Through assessing relevance and execution scores for each sub-lever and vector, we produce an intensity value (on a scale of 0-100). These scores capture the importance of deploying a sub-lever to support a vector, as well as the resources (actual or hypothetical) that are being directed towards it. For example, focusing on how the "State as a Customer" can boost customer definitions. When comparing the defence and life science market spaces, it has been clearly stated that public procurement is a critical aspect of the industrial strategies for both, meaning both would be given high relevance scores. However, while defence procurement is undergoing several...Read More

Forging the UK's AI Future

Tue, 21 Apr 2026 07:00:01 -0700

The Research and Development Society is excited to announce a new programme focused on developing and understanding new frameworks in pursuit of a dynamic AI policy platform. Since 2023, significant attention has been given to the development of UK AI regulation, with a range of policy signals and initiatives emerging through different channels, although the promised UK AI Bill that might bind this into a clear policy statement, has yet to emerge. While these developments reflect the pace and complexity of a rapidly evolving field, greater coherence and clarity will become ever more critical as the policy landscape matures. As AI technologies become more embedded in UK society, we will need to balance diverse economic, social, and technological priorities. We need a structured, evidence-based discussion to help navigate the trade offs and align long term objectives. The RDS is therefore launching this programme as part of its “Big Tent Initiative”, bringing together stakeholders from industry, government, academia, and civil society to contribute to the development of new models and strategic interventions that can support sustainable national growth.

Forging the UK's AI Future, will endeavour to delve into the detail of UK policy around the development and deployment of artificial intelligence from multiple angles. The detailed frameworks we are developing can describe the broad technological and commercial challenges of these...Read More

The Manifesto for National Growth

Mon, 16 Feb 2026 06:00:21 -0800

After a year in power, the UK government is facing a litany of challenges between a new world order, a divided nation and a stubbornly sluggish economy, contributing to a cost-of-living crisis. While delivering the government’s pledges of strong economic growth cannot solve these issues alone, it is vital to preparing for the turbulent waters ahead.

In response to these challenges, the Research & Development society is proposing a manifesto to lead a new cross-sector coalition to develop a unified growth framework, beginning with an assessment of the deployment of AI technologies across UK clusters and market sectors, to better link government policy with commercial success and drive sustainable economic renewal.

This initiative will be built around three core elements:

1. New Models to Underpin UK’s Growth Strategy

Although the government has pledged strong economic growth, current efforts are unfocused and under-resourced. Traditional economic and political models are no longer sufficient to address today’s challenges (including global instability and structural economic weakness). The continued focus on measuring activity rather than impact prevents a useful assessment of interventions. This manifesto argues that new conceptual frameworksⁱ are urgently needed to properly understand and stimulate growth. Our coalition intends to develop and promote these models.

2. A Broad Inclusive Coalition around a Unified Growth Framework

The Research & Development Society is forming a cross-sector coalition to create a more coherent and practical growth strategy. This includes research institutions, commercial companies, trade bodies, combined...Read More

Great Science, Poor Commercial Climate: "The UK's Pharma Dilemma"

Fri, 28 Nov 2025 06:04:10 -0800

A key element of an effective national innovation strategy is the ability to capture the creative value of invention to support the growth of the economy. We have previously discussed the risk of the UK becoming an Incubator Economy where the downstream value of new business is lost to the economy due to a failure to scale, either through poor commercialisation strategy or as a result of investors being too eager to cash out too soon, allowing others to acquire the business and potentially shift the value capture overseas. But this is not the only issue the UK faces in developing an effective growth plan – it also needs to align with the needs of more mature industry and attract their investment. The pharmaceutical sector is a case in point, with 2025 becoming an annus horribilis in terms of industrial focussed investment.

Back in 2020 Merck, known as MSD in Europe, announced a £1 billion ($1.31 billion) investment to a build an early research hub in London’s Knowledge Quarter located around Kings Cross Station. The centre was expected to be operating in 2025 with a staff of 800 including 120 new hires. At that time David Peacock, MSD managing director for the UK and Ireland told the Financial Times “We currently view the UK as a world leader in developing science, driven by the long-term emphasis on building a strong research and development infrastructure”. Yet abruptly in September 2025, the company announced it no longer planned to proceed with the centre with the loss of 125 jobs. So, what drove the change of heart? UK science, the foundation for the original investment decision has not...Read More

Unpacking the ‘Black Box’ of Meso-Economics

Mon, 22 Sep 2025 05:00:30 -0700

1. The Challenge

There is general recognition that macroeconomic theory is inadequate when it comes to understanding growth - but most responses to this challenge so far have been largely inadequate.

This weakness has been recognised and studied by many leading economists in the field but the precise challenges were very clearly articulated in the collection of essays on ‘Rethinking Capitalism’ edited by Mazzucato and Jacobs, containing contributions from several leading economists.

In their introductory essay for this collection, Jacobs and Mazzucato summarise the three main challenges in understanding the growth challenge:

‘Firstly, we need a richer characterisation of markets and the businesses within them …markets are better understood as the outcomes of interactions between economic actors and institutions…

The second key insight is that investments in technological and organisational innovation, both public and private, which are the driving force behind economic growth and development. The diffusion of such innovations across the economy affects not just the patterns of production, but of distribution and consumption…. But this requires a much more dynamic and accurate understanding of how innovation occurs than is provided by orthodox economic theories…

Recognition of the role of the public sector in the innovation process informs the third key insight. This is that the creation of economic value is a collective process.’

2. The Macro-meso Framework

These astute observations point to the urgent need to develop a rigorous meso-economic approach to understanding growth—the RDS has set out to provide this approach and to apply it to the UK economy to drive the growth agenda.

Re-shaping UK Life Science Commercialisation

Fri, 22 Aug 2025 04:00:35 -0700

Over the past few months the Research and Development Society has been collecting and analysing data from across the country and engaging in thorough consultation with stakeholders in key clusters. During this time we have seen announcements from new UK Industrial Strategy paper and the associated Life Sciences Sector Plan. There is still more that can be done, particularly in the area of commercialisation, as our investigation has revealed. We are now publishing our own conclusions and recommendations that have been produced and iterated over the course of our consultation. Please find our full report below.

The Challenge

The Research & Development Society has been running an intensive programme over the last 6 months, to understand the most significant challenges and potential solutions within the UK’s Life Science ecosystems. This initiative has integrated the RDS’ extensive expertise in R&D strategy and innovation management, new data collected from RDS surveys, and data provided by its partner organisations, augmented by close consultation with key stakeholders in life science ecosystems across the country.

The timing of this report is critical because the UK government has made Life Sciences a key component of its industrial strategy, assigning it significance as one of the Industrial Strategy growth-driving sectors (IS-8). This focus rightly recognises that the UK is well positioned to be competitive in this sector. The Government has also recognised that despite the nation’s success in innovation; it struggles with commercialisation and adoption: However, there are still problems with how the UK government is tackling the commercialisation challenge in the Life Science sector. A failure to accurately identify the gaps in the...Read More

Unbundling the Promise of AI: Hyperbole vs Reality

Wed, 23 Jul 2025 06:00:49 -0700

Artificial Intelligence is being hailed for its potential to transform many aspects of our lives – in particular, it provides a big opportunity for us to do new things and do them differently - But we need to understand the implications of this at global, national and local levels, in a systematic way.

The UK government has rightly recognised the importance of AI in developing a modern industrial strategy and is seeking to keep the UK at the forefront of the application of these new technologies. For example, the Department for Science, Innovation and Technology (DSIT) recently announced the creation of The Sovereign AI Unit to build and apply AI capabilities to drive economic growth and national security. But a key question is whether the UK has the right strategies in place to realise this promise.

While many in industry and government are getting excited about AI as a key to problems across the country and society, there is a lack of integrated analytical thinking on the matter. The challenge in doing this systematically is that much of this debate is already dominated by two distinct mindsets, which largely reflect the bi-polar view of technology-driven innovation:

the technology mindset which aims to promote the revolutionary potential of AI, emphasizing how recent developments, particularly in large language models (LLMs) have transformed the landscape beyond the foundations in this field laid over the last 50 years: this view is promoted aggressively by the major technology companies who would like to dominate this space, and the associated...Read More