Science and Technology: Economy

Lord Leong Excerpts

Thursday 31st October 2024 Lords Chamber

[Baroness Neville-Jones (Con)]

My Lords, I am lucky enough to be one of the Members of this House who is on the Science and Technology Committee. I very much welcome this debate and the excellent introduction that the noble Viscount, Lord Stansgate, gave it.

The excellent briefing that we received, among many others, from the Library, for which I thank it, rightly says that it is hard to measure the value of the contribution made by science and technology to the UK economy because of its all-pervasive nature and the fact that it is growing all the time. I also want to emphasise the general scene and the many problems we face, but one thing that is reassuring is the recognition across the Benches of this House, and indeed in Parliament generally, of the fundamental importance and quality of the scientific work and technological development that takes place in this country, and the opportunity we now have to make good on it to further benefit our own society and, more broadly, the population of the world.

I will make one point about something rather concerning that is connected to that. Science and technology, as a topic, is beginning to become a source of hostility and tension in international relations. One only has to think of the way in which the Chinese are exploiting it. Far from being a binder among nations, it can very easily become a source of real competition, hostility and seriously malign action. We should bear in mind that the liberal democracies do not have an agreed strategy on how to deal with this, but we need to develop one. We should not go on refraining from tackling the issue because it is difficult, even though that is the case. If we do not tackle it, we will find in due course that the extent to which science and technology can benefit society is greatly reduced by the potential problem of conflict.

Returning to the UK, something puzzling about our situation is that we are a society with a reputation for science and innovation, but we seem to lag behind in what we ought to be good at, which is greater productivity. How come we have this contradiction? Our universities are the bedrock of our capability; their graduates feed our independent laboratories and learned societies, and their geographical spread helps to keep our educational disparities under control. However, as has been rightly said, they are not going to survive the financial situation in which they now find themselves. I am very concerned that we are about to witness a drama if that situation is not gripped.

The public sector needs to intervene, but I do not believe that it can deal with the whole thing. What is notable is that private sector companies, which used to be great sources of R&D themselves, no longer—with some notable exceptions—play that role. It is very important that they begin to move closer to universities, so that they themselves become sources of innovation. Whacking up the tax on them does not help with the notion that they will engage in greater investment. The Chancellor said yesterday that the public spending outlined will crowd in private investment, but I worry that it might crowd it out.

The low skills base is another problem we need to tackle. As the noble Lord, Lord Mair, rightly said, it is a soluble problem, and other people have models that we ought to draw on. We are making heavy weather of that, and we ought to do better.

I will make just one last point. The difficulties British start-ups face when they want to scale up are well known. Our relatively small economy, openness and English language make us an attractive research destination, but they also make us vulnerable to poaching. We have to inculcate the habit of investing in our intellectual property and rewarding higher-risk, higher-reward propositions. If we do that, we will go a long way towards dealing with the issue of our lag in productivity.

[Lord Leong (Lab)]

My Lords, the advisory speaking time for this debate is four minutes. I gently urge all noble Lords to keep within this time limit so that the debate can finish at a reasonable time.