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THE DEVELOPMENT STAGE

To fulfil its science superpower, innovation, growth and green innovation carries risk. The risk
industrial revolution ambitions, the government must make is multifaceted, arising from the
scale of the technical challenge,
the UK a more attractive environment in which businesses can cost, timings, certainty of market
invest and conduct late-stage research and development. The opportunity, competitive environment
National Engineering Policy Centre’s latest report showcases and opportunities or barriers to
the business perspective on late-stage R&D and how to make commercialisation.
There is a compelling case for the
the UK a more attractive environment for investors public sector to support businesses
to manage the risks associated with
ate-stage R&D is a key part of UK. Late-stage R&D generates ‘spill- late-stage R&D and incentivise business
the innovation process and over’ benefits beyond the individual investment – the socio-economic
accounts for the majority of R&D business, contributing to innovation benefits from the new products,
that businesses do. It comprises and growth in the local area. processes, services and technologies
L the activities required to take a It can act as a focal point for a are shared, so the risk must be too.
proof of concept or prototype through business to develop activities and Late-stage R&D depends upon a thriving
to commercial application, ultimately infrastructure, attract partners and research base, involving universities,
delivering new products, processes, investment, develop new local markets research institutes, R&D infrastructures,
technologies and services to market. and establish a broader skills base and businesses, to do the R&D required
Late-stage R&D delivers tradeable around a particular location. Late- to provide a pipeline of projects ready to
solutions and improvements, creates stage R&D is predominantly financed progress to late-stage R&D.
new markets and jobs, increases by businesses, with the private sector Therefore, the health of the whole
efficiency and improves productivity contributing approximately two thirds research and innovation system is
– bringing returns and socio-economic of the UK’s investment in R&D. crucial for successful late-stage R&D.
benefits to people in all parts of the Late-stage R&D, like all R&D and However, the NEPC’s report focuses

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