The UK faces a lost decade of stagnation unless the Government moves away from an “economic corner”, a new report by the Work Foundation and Lancaster University says today.

It calls for better investment in areas of the economy likely that is most likely to create new jobs.

Will Hutton, co-author of the report, said:

Britain is in an economic corner and we must now innovate our way out of stagnation. This requires a wholesale shift in the way we think about growth. We need an enterprising state co-creating with business and finance – in short, an innovation ecosystem.

Britain’s patchwork of institutions, networks and public agencies is not fit for purpose. Too few firms and public bodies have a grip on how to benefit from open innovation – the key to change in the 21st century.

The state must take the lead on this because confidence among businesses is so fragile at present. The Government has already recognised the importance of this agenda but the time has come to make it happen.

The Work Foundation and Lancaster University launched the Big Innovation Centre, aimed at promoting innovation and investment.

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