UK Tech Policy Overhaul: Can the New Approach Deliver Real Outcomes?
The UK government is scrapping the Department for Science, Innovation and Technology (DSIT), merging its functions into the Department for Business and Trade. Experts express concerns but see potential for better linking innovation with commercialisation.
UK Government Reshuffles Tech Administration
The administration of new Prime Minister Andy Burnham has decided to abolish the Department for Science, Innovation and Technology (DSIT), which was created only in February 2023. Its functions will be transferred to the newly created Department for Business, Innovation, Science and Trade (DBIST) or the Department for Business and Trade (DBT).
DSIT Achievements and Criticism
DSIT originally promised to turn the UK into a "science and technology superpower" by 2030, increasing public investment in research and development, particularly in quantum technologies, artificial intelligence, engineering biology, semiconductors, and future telecoms, as well as life sciences, space, and green technologies.
However, many initiatives faced delays and criticism. The semiconductor strategy was delivered over a year late without specifics. The quantum strategy was also delayed and criticised for failing to outline how to move from research to commercialisation. The 2024 changes to R&D tax credit schemes, overseen by DSIT, received mixed reviews: ringfencing R&D onshore was good for tackling fraud, but removing support structures for SMEs turned the scheme into a bureaucratic puzzle.
Experience with DSIT
The article's author, entrepreneur Pete Hopton, who founded five companies and raised approximately €117 million, states that despite repeated attempts, he never received a reply from DSIT. In contrast, DBT and the Treasury proved responsive and organised meaningful meetings. This raises questions about how promising startups can engage with DSIT.
New Approach and Hopes
The decision to abolish DSIT is not surprising given that four prime ministers have served since its creation. The new AI Minister Kanishka Narayan is seen as capable. The author emphasises that innovation needs commercialisation, and DBT's experience can help achieve real business outcomes rather than just generating inventions.
