TBI is calling on the UK government to make technology adoption central to its national growth strategy, warning that sluggish diffusion of innovation is holding back productivity and competitiveness.
Universities should be mobilised as the backbone of a new “chief technology officer (CTO) as a service” for the UK – a national system that supports business across every stage of the adoption process.
New TBI analysis shows upgrading the UK’s tech-adoption ecosystem could deliver in excess of £6 billion – or 0.2 per cent – in GDP by the end of this parliament, driving higher wages and better jobs across the economy.
The Tony Blair Institute for Global Change today calls for technology adoption to become a central part of the UK’s growth strategy, with universities playing a pivotal role in spreading innovation across the economy.
The government’s industrial strategy and recent Technology Adoption Review have already recognised the scale of the UK’s diffusion problem. The challenge now is implementation: how to deliver a diffusion ecosystem that helps move the dial on growth.
TBI argues that universities should form the foundation of that system, linking together the advisory services, government incentives and digital tools businesses need to adopt technology effectively.
In order to unlock billions in potential growth, close the “diffusion gap” and turn innovation into impact, TBI proposes a three-pronged approach aligned with the government’s growth strategy.
1. Empower universities as engines of diffusion
Britain’s universities should become the backbone of a new national tech-adoption ecosystem. TBI proposes creating University Technology Adoption Centres – regional hubs that help businesses identify, acquire and integrate proven technologies. These centres would build on existing “growth hubs” and provide training through programmes like Help to Grow: Management, facilitate network building and peer-to-peer learning, and deploy graduates as “CTO advisors” to support small and medium-sized enterprises (SMEs) directly.
2. Retool government services to support firms
Government must address the barriers that stop firms from adopting technology at every stage of the journey. TBI recommends a tech compass (an interactive online diagnostic tool that helps firms identify technology gaps in their operations and offers personalised advice on how to plug them) and trusted tech catalogue to help firms diagnose their needs and identify secure, proven tools. Proposals also include government-backed technology-adoption vouchers which are tied to proven tools and the introduction of a stream within the Growth Guarantee Scheme (a government initiative which helps SMEs access finance for growth) dedicated to de-risk investment in technology adoption.
3. Rewire the national infrastructure for adoption
A connected digital backbone should bring all these services together. TBI calls for a single “CTO as a service” digital platform that integrates existing adoption support, a business digital ID to tailor outreach and personalise support to every firm, and an AI-powered assistant to triage and connect firms to the right services quickly and efficiently. CTO as a service is a business model where companies hire an external, part-time CTO for strategic technology leadership and guidance without the cost of a full-time hire.
Together, these reforms would create an ecosystem where universities anchor the diffusion effort, government services remove barriers to adoption, and national infrastructure connects it all.
TBI estimates that upgrading the UK’s tech-adoption ecosystem would largely pay for itself and could boost GDP by more than £6 billion by the end of this parliament – on a par with the impact from the government’s flagship planning reforms.
Tom Smith, Director of Economic Policy at the Tony Blair Institute, said:
“For years, Britain’s weak record on technology diffusion has held back growth. As global innovation accelerates, the gap between the technological frontier and the everyday economy will only widen unless government puts technology adoption at the heart of its growth strategy.
“Other countries are moving fast to support adoption at scale; Britain must do the same. By putting universities – one of the UK’s greatest institutional strengths – at the centre of a modern diffusion ecosystem, government can help firms adopt proven technologies faster and ensure the benefits of innovation reach every part of the country.”
Ryan Wain, Senior Director of Policy and Politics at the Tony Blair Institute, said:
“Universities have become proxies in a seemingly endless culture war when they should be Britain’s engines of growth. It’s time to stop beating them with a political stick and recognise them as the world-class institutions they are, embedded right across the country and capable of spreading ideas to every town and city.
“They’re brimming with the expertise to drive the technology revolution – one that will define the next era of growth – but they too must adapt. Training and skills are the front line of this revolution, and universities are where it must begin. If government wants to end decline and spark renewal, it must choose universities as the vehicle for change, and universities must step up to lead.”