Nigel Sheinwald

The UK Economy: Entrepreneurship & Innovation

When in London earlier this month, I and other senior British Ambassadors met some of the leaders of Britain's manufacturing industry. It was a good opportunity to hear first hand the challenges they were facing. But it also provided a useful reality-check against the ultra-pessimistic stories you sometimes read in the newspapers.

These are difficult times for the global economy. The UK is no different. The world economy is seeing the most difficult economic conditions for generations. What we rarely hear about, though, are the business success stories that are happening every day, drawing on the tradition of entrepreneurship and innovation in the UK.

Take Rolls Royce, who earlier this week announced that they are continuing to invest in the UK's manufacturing and research base at four different sites to produce turbine components and research into greener aircraft engines. It is developments like this that will lead us to recovery. Businesses in the UK and their employees continue to deliver internationally a broad range of high value-added and sophisticated goods and services.

The UK's manufacturing sector is the 6^th largest in the world, contributing $250bn to the UK economy. It is also an area that is evolving into new areas, such as low carbon technologies, and improving its own performance: firms in the UK have increased their productivity through the application of R&D by 50% since 1997, outstripping the gains made elsewhere in the G7.

Internationally mobile companies continue to see the UK as a highly attractive place to invest. We receive more Foreign Direct Investment (FDI) than any other country, apart from the US: in 2006 the UK attracted  $40 bn, exceeding France ($25 bn) and Germany ($5bn). American Axle & Manufacturing (AAM) is the world leader in the design, engineering and manufacture of driveline and drivetrain systems for trucks, 4WD vehicles and cars. Global success in this highly competitive field depends on the early adoption of leading edge manufacturing techniques. AAM used the UK Trade & Investment (UKTI) R&D Programme to identify specialist welding techniques developed by a leading UK research centre.

Our UK Trade & Investment team also of course provide a range of services and help to UK companies looking for opportunities abroad. Take Kromek, a venture-backed high technology company, for example. They recently launched in Washington a series of ground-breaking products based upon digital x-ray detection techniques. They are the first in the world to directly identify the composition and presence of threat liquids, reducing the risk, hazard and costs posed to travel.

Clearly the current situation is difficult. But it is equally clear that there are fundamental business strengths in the UK that will help us to recover from today's downturn. I am proud that sustaining and expanding the business and economic links between Britain and America, and nurturing our business partnerships in difficult times, is a central part of my and the Embassy's job here.

Posted at 10:03 31 July 2009 by Nigel Sheinwald  |  Comments[0]