NESTA launched its Innovation Index yesterday, which shows that creativity in UK businesses, a lot of which will come from entrepreneurs, is driving UK productivity to increase faster than in other countries. Along with bringing more labour into the market productivity growth is the underlying driver of long term economic growth.
This study brings welcome recognition to entrepreneurs around the country. Increasingly innovation happens in small firms and without that innovation the prospects of the UK would be diminished. The last year or so has been hard work for a lot of startups and it is important to note that whilst many entrepreneurs are not putting the money in the bank as fast as they would like to right now they are making an important contribution to the country.
I also hope the index will spur additional investment in innovation to underpin this country’s long term prospects, particularly as it will make it obvious if our efforts to be creative diminish.
You can read more about the study in the FT.