Science and Technology: Economy

Lord St John of Bletso Excerpts

Thursday 31st October 2024 Lords Chamber

[Lord St John of Bletso (CB)]

My Lords, I join in thanking the noble Viscount, Lord Stansgate, for introducing this debate in such a comprehensive and impressive fashion, and in congratulating my noble friend Lady Freeman on an outstanding maiden speech.

There is no doubt that the United Kingdom stands at a pivotal moment in its scientific and technological development. While I welcome the Chancellor’s commitment in her Budget speech to drive innovation to protect

“record funding for research and development to harness the full potential of the UK’s science base”,—[Official Report, Commons, 30/10/24; cols. 814-15.]

the reality is that the UK and Europe tech sector is massively underpowered and underfunded compared to the United States. What are the equivalents of Meta, Alphabet, Tesla, Apple and Microsoft in Europe? While we have much to be proud of in our achievements in science and technology in the UK, the reality is, sadly, that we are failing to fully commercialise our advantages in research excellence in our top global universities, as well as the growth in fintech and health tech companies.

I wish to focus my brief remarks on the life sciences sector, where the advances in technology have huge potential both to cut costs and to promote patient care, especially in imaging, diagnostics, and predictive analytics, as well as in administration. In this regard, AI and quantum computing have played, and will continue to play, a major contribution in harnessing more efficiencies and breakthroughs in new treatments and pharmaceuticals.

The United Kingdom is well recognised as a world innovation hub, but we have to retain that. To grow its true potential, we need to retain our talent pool. We have some of the highest costs of visa applications compared to other European nations, which has sadly resulted in the loss of a lot of talent. We certainly need to be a lot more proactive in promoting and retaining highly skilled talent. We have hugely successful science parks, particularly in Oxford and Cambridge, which have driven commercialisation, despite the infrastructure challenges of the lack of lab space.

Time restricts me from elaborating on the challenges of IP commercialisation. Many spin-outs have lost substantial equity to foreign interest, with UK universities retaining only 20% equity, which has led to substantial IP leakages in company commercialisation abroad. Can the Minister elaborate on the scope for setting up a cross-departmental implementation taskforce for streamlining funding mechanisms for scaling SMEs in the tech sector? We need to create specialised regulatory pathways for emerging technologies and develop incentives for preventive healthcare. A lot more could, and should, be done to fund longevity research initiatives—particularly for this House.

In conclusion, I say that there is no one lever to pull, but making the UK tech sector more attractive to global capital is key. The integration of science, technology and healthcare offers significant potential for economic returns and improved population health outcomes. Without immediate action, Britain risks falling behind in the global race for technological supremacy. The time for decisions is now.