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. The RDS 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 authorities, and investors. The goal is to develop a unified macro–meso–micro model of growth that links government policy directly to commercial success, enabling more targeted and collaborative interventions.
3. Strategic Interventions to Test ideas and Drive Competitive Growth
The coalition aims to design targeted policy interventions and “pathfinder” initiatives to build globally competitive UK companies, strengthen investment, and reinvigorate corporate growth. Its first research focus will examine how rapid AI adoption is reshaping markets, helping the government balance innovation with protecting existing industries.
i Conceptual frameworks include:
- Recognising that traditional macroeconomic thinking (e.g., GDP growth, interest rates, fiscal stimulus) may not fully explain today’s complex, innovation-driven economies.
- Changes needed to conventional assumptions about how government interventions (policy) translate into business growth and investment.