Delivering the UK Industrial Strategy: Lessons From The Rest of the World

Man in hard hat talking industrial policy

Glenn

๎€ฅ

Date posted

July 21, 2025

๐˜ฟ๐™š๐™ก๐™ž๐™ซ๐™š๐™ง๐™ž๐™ฃ๐™œ ๐™ฉ๐™๐™š ๐™๐™†’๐™จ ๐™ฃ๐™š๐™ฌ ๐™„๐™ฃ๐™™๐™ช๐™จ๐™ฉ๐™ง๐™ž๐™–๐™ก ๐™Ž๐™ฉ๐™ง๐™–๐™ฉ๐™š๐™œ๐™ฎ (๐™„๐™ฃ๐™ซ๐™š๐™จ๐™ฉ 2035): ๐™‡๐™š๐™จ๐™จ๐™ค๐™ฃ๐™จ ๐™›๐™ง๐™ค๐™ข ๐™–๐™ง๐™ค๐™ช๐™ฃ๐™™ ๐™ฉ๐™๐™š ๐™ฌ๐™ค๐™ง๐™ก๐™™

The UK’s new Industrial Strategy, with its welcome focus on city regions and clusters, sets an ambitious course. ๐˜‰๐˜ถ๐˜ต ๐˜ฉ๐˜ฐ๐˜ธ ๐˜ฅ๐˜ฐ ๐˜ธ๐˜ฆ ๐˜ฆ๐˜ฏ๐˜ด๐˜ถ๐˜ณ๐˜ฆ ๐˜ฆ๐˜ง๐˜ง๐˜ฆ๐˜ค๐˜ต๐˜ช๐˜ท๐˜ฆ ๐˜ฅ๐˜ฆ๐˜ญ๐˜ช๐˜ท๐˜ฆ๐˜ณ๐˜บ ๐˜ฐ๐˜ฏ ๐˜ต๐˜ฉ๐˜ฆ ๐˜จ๐˜ณ๐˜ฐ๐˜ถ๐˜ฏ๐˜ฅ, ๐˜ต๐˜ณ๐˜ถ๐˜ญ๐˜บ ๐˜ฅ๐˜ณ๐˜ช๐˜ท๐˜ช๐˜ฏ๐˜จ ๐˜ช๐˜ฏ๐˜ฅ๐˜ถ๐˜ด๐˜ต๐˜ณ๐˜ช๐˜ข๐˜ญ ๐˜ฅ๐˜ฆ๐˜ท๐˜ฆ๐˜ญ๐˜ฐ๐˜ฑ๐˜ฎ๐˜ฆ๐˜ฏ๐˜ต ๐˜ข๐˜ฏ๐˜ฅ ๐˜ช๐˜ฏ๐˜ค๐˜ญ๐˜ถ๐˜ด๐˜ช๐˜ท๐˜ฆ ๐˜จ๐˜ณ๐˜ฐ๐˜ธ๐˜ต๐˜ฉ?

Drawing on global best practices, especially from regions like the US (Research Triangle Park), Canada (Global Innovation Clusters), Ireland, Denmark, and France, here are some critical lessons for delivery:

๐Ÿญ. ๐—˜๐—บ๐—ฝ๐—ผ๐˜„๐—ฒ๐—ฟ ๐—ฃ๐—ฟ๐—ผ๐—ณ๐—ฒ๐˜€๐˜€๐—ถ๐—ผ๐—ป๐—ฎ๐—น ๐—–๐—น๐˜‚๐˜€๐˜๐—ฒ๐—ฟ ๐—ข๐—ฟ๐—ด๐—ฎ๐—ป๐—ถ๐˜€๐—ฎ๐˜๐—ถ๐—ผ๐—ป๐˜€: As seen in Denmark and France, well-resourced, professional cluster organisations are vital. They act as neutral facilitators, bringing together businesses (especially SMEs), universities, and public bodies to drive collaborative R\&D, innovation projects, and internationalisation. The UK should consider strengthening and formalising such bodies within its chosen clusters.

๐Ÿฎ. ๐—ฆ๐˜‚๐˜€๐˜๐—ฎ๐—ถ๐—ป๐—ฒ๐—ฑ, ๐—Ÿ๐—ผ๐—ป๐—ด-๐—ง๐—ฒ๐—ฟ๐—บ ๐—–๐—ผ๐—บ๐—บ๐—ถ๐˜๐—บ๐—ฒ๐—ป๐˜ (๐—•๐—ฒ๐˜†๐—ผ๐—ป๐—ฑ ๐—ฃ๐—ผ๐—น๐—ถ๐˜๐—ถ๐—ฐ๐—ฎ๐—น ๐—–๐˜†๐—ฐ๐—น๐—ฒ๐˜€): Ireland’s consistent, decades-long commitment to its industrial policy, and Germany’s stable federal-state approach, underscore the need for longevity. Industrial transformation takes time. The UK must establish a policy framework that provides certainty and patient capital, avoiding the discontinuity that has sometimes hampered past efforts.

๐Ÿฏ. ๐—•๐—ฟ๐—ถ๐—ฑ๐—ด๐—ฒ ๐—ฅ๐—ฒ๐˜€๐—ฒ๐—ฎ๐—ฟ๐—ฐ๐—ต ๐˜๐—ผ ๐—–๐—ผ๐—บ๐—บ๐—ฒ๐—ฟ๐—ฐ๐—ถ๐—ฎ๐—น ๐—ฅ๐—ฒ๐—ฎ๐—น๐—ถ๐˜๐˜† (๐—–๐—ฎ๐˜๐—ฎ๐—ฝ๐˜‚๐—น๐˜ ๐— ๐—ผ๐—ฑ๐—ฒ๐—น & ๐—•๐—ฒ๐˜†๐—ผ๐—ป๐—ฑ): The UK’s Catapult Network is a strong asset in translating research into application. We need to ensure these, and similar initiatives, are deeply integrated into cluster delivery, actively fostering knowledge transfer and commercialisation, and supporting SMEs in de-risking new technologies.

๐Ÿฐ. ๐—ฆ๐—ธ๐—ถ๐—น๐—น๐˜€ ๐—ฎ๐—ป๐—ฑ ๐—ช๐—ผ๐—ฟ๐—ธ๐—ณ๐—ผ๐—ฟ๐—ฐ๐—ฒ ๐——๐—ฒ๐˜ƒ๐—ฒ๐—น๐—ผ๐—ฝ๐—บ๐—ฒ๐—ป๐˜ ๐—ฎ๐—ฟ๐—ฒ ๐—–๐—ผ๐—ฟ๐—ฒ: From Germany’s dual vocational system to Australia’s new industry-led VET clusters, aligning education and training with industry needs is paramount. Our delivery must ensure a continuous pipeline of skilled talent tailored to the demands of the IS-8 sectors and their respective clusters. This requires deep collaboration between employers, educational institutions, and local authorities.

๐Ÿฑ. ๐——๐—ฎ๐˜๐—ฎ-๐——๐—ฟ๐—ถ๐˜ƒ๐—ฒ๐—ป ๐—ฎ๐—ป๐—ฑ ๐—”๐—ฑ๐—ฎ๐—ฝ๐˜๐—ถ๐˜ƒ๐—ฒ ๐—ฆ๐˜๐—ฟ๐—ฎ๐˜๐—ฒ๐—ด๐˜†: The US Cluster Mapping Project and regular evaluations in France and Canada highlight the importance of continuous assessment. We must use robust data to identify emerging strengths, track performance, and adapt our delivery mechanisms to ensure the strategy remains agile and effective in a dynamic global economy.

๐Ÿฒ. ๐—Ÿ๐—ฒ๐˜ƒ๐—ฒ๐—ฟ๐—ฎ๐—ด๐—ฒ ๐—Ÿ๐—ผ๐—ฐ๐—ฎ๐—น ๐—Ÿ๐—ฒ๐—ฎ๐—ฑ๐—ฒ๐—ฟ๐˜€๐—ต๐—ถ๐—ฝ ๐—ฎ๐—ป๐—ฑ ๐——๐—ฒ๐˜ƒ๐—ผ๐—น๐˜ƒ๐—ฒ๐—ฑ ๐—ฃ๐—ผ๐˜„๐—ฒ๐—ฟ๐˜€: The increasing devolution to Mayoral Combined Authorities is a significant opportunity. Empowering local leaders with genuine tools and autonomy to shape their regional industrial strategies, building on unique assets and fostering bottom-up growth, will be crucial for the strategy’s success.

๐Ÿณ. ๐—œ๐—ป๐—ฐ๐—ฒ๐—ป๐˜๐—ถ๐˜ƒ๐—ถ๐˜€๐—ฒ ๐—ฃ๐—ฟ๐—ถ๐˜ƒ๐—ฎ๐˜๐—ฒ ๐—œ๐—ป๐˜ƒ๐—ฒ๐˜€๐˜๐—บ๐—ฒ๐—ป๐˜: Public policy should aim to “crowd in” private capital. Addressing high industrial energy costs, streamlining planning, fast-tracking approvals, and de-risking private investment through targeted public funds will be critical.

The successful delivery of the UK’s Industrial Strategy hinges on learning from these global experiences, fostering deep collaboration, and maintaining a consistent, long-term vision.

๐˜ž๐˜ฉ๐˜ข๐˜ต ๐˜ข๐˜ณ๐˜ฆ ๐˜บ๐˜ฐ๐˜ถ๐˜ณ ๐˜ต๐˜ฉ๐˜ฐ๐˜ถ๐˜จ๐˜ฉ๐˜ต๐˜ด ๐˜ฐ๐˜ฏ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฎ๐˜ฐ๐˜ด๐˜ต ๐˜ค๐˜ณ๐˜ช๐˜ต๐˜ช๐˜ค๐˜ข๐˜ญ ๐˜ฅ๐˜ฆ๐˜ญ๐˜ช๐˜ท๐˜ฆ๐˜ณ๐˜บ ๐˜ฎ๐˜ฆ๐˜ค๐˜ฉ๐˜ข๐˜ฏ๐˜ช๐˜ด๐˜ฎ๐˜ด ๐˜ง๐˜ฐ๐˜ณ ๐˜ต๐˜ฉ๐˜ฆ ๐˜ฏ๐˜ฆ๐˜ธ ๐˜œ๐˜’ ๐˜๐˜ฏ๐˜ฅ๐˜ถ๐˜ด๐˜ต๐˜ณ๐˜ช๐˜ข๐˜ญ ๐˜š๐˜ต๐˜ณ๐˜ข๐˜ต๐˜ฆ๐˜จ๐˜บ?

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