Understanding the impact of Innovation Policy on UK Supply Chains (FFTwo022)

How do government innovation policies ripple through the UK’s supply chains?

This report investigates the impact of innovation policy on innovation diffusion along supply chains and on supply chain resilience in the UK, with a particular focus on the role of Innovate UK programmes in shaping inter-firm knowledge flows and supply network structures. Using a unique dataset that integrates Innovate UK award information with firm-level innovation outputs (patents) and supply chain relationships, the study provides comprehensive empirical assessments of how innovation policy influences both the direction of technological diffusion and the configuration of supply chain networks across the UK economy. The findings offer evidence-based insights for policymakers and industry leaders aiming to build more innovative and adaptive supply chains in a rapidly changing global environment.