David Connell, Senior Research Associate at the CBR, told the Committee that UK industrial policy has for too long focused on commercialising breakthrough academic research by supporting spinoff companies and subsidising venture capital investment in them through tax breaks. However, the success rate for these kinds of startups is very low and the most promising companies are usually sold to overseas-based corporations, resulting in loss of founding entrepreneurial leadership and truncated growth in the UK.
The report – entitled ‘Selling Less of the Family Silver” – also calls for the creation of an independent body, similar to the Office for Budget Responsibility, to monitor and advise government on innovation and industrial policy spending.
The House of Lords Committee also heard from Lord O’Donnell, former Cabinet Secretary and senior official at the Treasury, and from Greg Clark, a former MP whose roles included Business Minister.
