2026 UK Innovation Report finds UK excels in early-stage innovation but underperforms on innovation outcomes

Published by Cambridge Industrial Innovation Policy, based at the Institute for Manufacturing (IfM), the UK Innovation Report offers a detailed analysis of the UK’s innovation landscape, assessing the performance of key industrial sectors compared to global competitors.

The UK is one of the world’s leading innovation economies. It ranks fourth globally for scientific publications (behind only China, the USA, and India) and sits among the top countries for high-impact research and patents in critical technologies. It has also built one of the strongest startup ecosystems outside the United States. 

The latest UK Innovation Report finds that while the UK excels in research and early-stage innovation, it underperforms on innovation outcomes such as high-technology exports, technology scale-up, and global industrial market share.   

As the UK Government implements its national Industrial Strategy, the report provides new evidence on the UK’s innovation and industrial performance. The report highlights that competitiveness – measured at sector level through value-added, export performance, employment and global position – should become the central benchmark for success.  

A central feature of this year’s report is a deep-dive sectoral analysis of the Electronics and Electrical Equipment sectors. Recognised as Advanced Manufacturing sectors under the UK’s Modern Industrial Strategy, these sectors sit at the heart of electrification and the net-zero transition.  

On Thursday 19 March, policymakers, industry leaders, and experts gathered at the Institute for Government for the official launch of the Innovation Report 2026.

As the demand for stronger evidence in industrial and innovation policymaking increases, the UK Innovation Report 2026 makes a timely contribution by offering new data, analyses, and perspectives to support evidence-based policy development.

Read the report.



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source: cam.ac.uk