What are the key factors holding back productivity growth in our country?
Well, aside from well-known issues such as overcoming the funding ‘valley of death’ by unlocking UK pension funds, I think one of the biggest issues is that we just don’t think long-term enough. My only wish is that, as a country, we’d adopt a strategic approach over a 15 to 20-year period, instead of making short-sighted decisions based on what’s in the news. Without that stability and long-term planning, it’s tough for businesses to invest and grow with confidence. And let’s not forget the basics, like power and infrastructure. We’re running at around 110% grid capacity, which makes it a real challenge to even get the power you need within a timeframe you need it.
How do you think the lack of a long-term strategy affects the UK’s ability to compete globally?
It’s a huge problem. When you’re constantly changing direction based on newspaper headlines, it’s impossible to build the kind of environment that attracts and retains top talent, that gives investors confidence to invest, and for innovative companies to scale. Look at a country like Denmark—they’ve got Novo Nordisk, and they’re delivering huge stable long-term returns that can help provide excellent public services. Why? Because they protected the company and kept it in Denmark. We need to be thinking about how we can create our own success stories. This applies to every country.
How do you think the UK can better monetise its intellectual property?
The UK has a pretty strong early-stage ecosystem helping to translate ideas into businesses. I’ve also witnessed a cultural shift within universities literally over the last five years where they are putting an increasing emphasis on monetizing IP rather than letting it sit on shelves for 20 years, but we could always be bolder. As I mentioned earlier, the key for me is solving the ‘valley of death’ conundrum and making it easy for companies to stay in the UK.
You mentioned earlier that the UK needs to create an environment that attracts and retains innovative companies. What do you think are some of the key factors that drive companies to move abroad?
It really comes down to access to capital, markets, and talent. If companies feel like they can’t get the funding they need to grow, or if they’re struggling to tap into big markets and hire the best people, they start looking elsewhere. We need to make sure that the UK is providing the right opportunities and support for these companies to thrive here at home.
What challenges have you seen startups face when trying to scale, and how can we address them?
Money, money, money. That’s the biggest challenge for startups trying to scale. They call it the ‘valley of death’ for a reason. There’s plenty of grant funding early on, but once you’re in SME territory, raising money becomes a real nightmare. To help businesses scale, we need to get institutional investors to put more money into early-stage companies, make sure they have access to talent, products, and markets, and offer competitive pay for C-suite teams so they don’t just jump ship to the US or elsewhere.
How can the UK retain innovative companies and prevent them from moving abroad?
We need to protect and retain companies at their point of origin by encouraging the growth of home-grown, patient capital that backs companies solving big challenges, like human and planetary health. If we can create our own success stories, like Denmark has with Novo Nordisk, that’ll make a massive difference for the whole UK.
What potential benefits do you see for the wider UK population if these issues are addressed?
Where do I start? If we can foster a thriving innovation ecosystem, the entire country will benefit. We’re talking about a serious boost in tax revenues, which can be invested in the NHS, education, infrastructure—you name it. Look at Norway—they used their oil money to create one of the world’s largest sovereign wealth funds, and now it’s basically sustaining the whole country. Plus, if we can create a company that has a global impact, like curing cancer or solving climate change, that’s a huge selling point for the UK.
Final thoughts on how the UK can unlock its potential and drive long-term productivity growth?
It all comes down to thinking long-term and creating an environment that supports innovation. Money is not infinite, and as a country, I would encourage us to make long-term bets on areas of science where we can become global leaders. That means investing in infrastructure, education, and research, and creating a culture that celebrates risk-taking and entrepreneurship. We need to be bold, think big, and not be afraid to do things differently. If we can get that right, there’s no reason we can’t be a global leader in innovation and become the productive nation we really should be.
