RS Group has released new research indicating that a lack of urgency around innovation in the UK industry may affect the country’s competitiveness within Europe.

The report, titled “Staying competitive: innovation in UK industry,” reflects the perspectives of 567 senior decision makers from the manufacturing, energy and utilities, and construction sectors. The findings show that while a large majority – 90% – of UK industry leaders believe in the importance of innovation, only 62% think their organisation “won’t survive without innovation”.

This contrasts with sentiment in Italy and France, where 80% and 84% of surveyed leaders, respectively, consider innovation critical to organisational survival. The report suggests this disparity in perception could impact the UK’s long-term position in the European industrial landscape.

Competitive concern

The survey found that UK businesses were less likely than their European counterparts to consider innovation an existential imperative. When questioned about future prospects, a higher proportion of decision makers in Italy and France agreed that failure to innovate threatened their organisations’ viability.

Researchers identified several factors hampering innovation progress in the UK, with systemic and technological barriers prominent alongside broader economic challenges. More than three-quarters (78%) of UK leaders reported difficulties aligning innovation with the immediate demands of day-to-day operations.

Supply chain disruption was also noted as a significant impediment, with 41% of UK respondents citing it as a factor hindering innovation. This is notably higher compared to 34% in France and 31% in Italy, suggesting that external economic shocks have had a greater impact on innovation processes among UK industrial firms.

Technology investment

The report recommends investing in technology to bridge the innovation gap. Twenty percent of those surveyed indicated that their current technology stack is outdated. Nevertheless, there are signs of momentum in areas such as industrial IT, with 42% of decision-makers prioritising it for investment. Other key areas include Industrial IoT (39%) and automation and robotics (36%), reflecting the UK industry’s appetite for digital transformation.

However, the report notes that investing in technology alone is not sufficient. Cultural transformation within organisations is required to maximise returns from technology spend and shift innovation from sporadic to strategic.

Leadership views

Mike Bray, VP of Innovation at RS, said:

“People are excited by innovation, and there is a strong willingness to act among senior decision makers across industrial sectors. However, successful execution depends on leaders viewing innovation as a non-negotiable component of their long-term strategy, instead of an opportunistic pursuit.”

“Balancing immediate challenges, such as economic uncertainty, regulatory shifts and supply chain crunches, with creating time and space to think of new and different ideas is a constant challenge. Investing in strong technology foundation is the first step but taking a proactive and strategic approach to innovation remains critical for maintaining competitiveness.”

The survey was carried out by Walnut on behalf of RS Group, and covered the UK, France, and Italy. Respondents included senior leaders in manufacturing, energy and utilities, and construction.

The findings indicate that, while the importance of innovation is widely recognised, its role in strategic planning is less pronounced among UK industrial leaders than among their European peers, raising questions about the UK’s ability to keep pace in an increasingly competitive environment.