On 14 October 2024, the day of the International Investment Summit, the UK government published its green paper 'Invest 2035: The UK's Modern Industrial Strategy', a ten-year plan designed to promote growth in the UK, with a focus on growth-driving sectors, including the Life Sciences and the Digital and Technologies sectors.
The Industrial Strategy will be informed by the new Industrial Strategy Advisory Council, which is to be chaired by Clare Barclay, CEO of Microsoft UK. The green paper explains that the Advisory Council will be led by evidence and "empowered to advise, make recommendations, and monitor Industrial Strategy policy". The creation of the Advisory Council is intended to prevent frequent policy changes and ensure "stability and long-termism" and the government has committed to making it a permanent and independent statutory body.
This green paper comes less than a week after the UK Government announced the launch of the Regulatory Innovation Office noting that more plans for boosting growth were to be expected.
Growth-driving sectors
The green paper identifies eight sectors as offering the most opportunity for growth, to be prioritised under the Industrial Strategy:
- Digital and Technologies;
- Life Sciences;
- Advanced Manufacturing;
- Clean Energy Industries;
- Creative Industries;
- Defence;
- Financial Services; and
- Professional and Business Services.
These sectors will be the subject of individual Sector Plans which will be drawn up as part of the next stage of the Industrial Strategy's development following stakeholder engagement.
Life Sciences
The green paper refers to the critical role the life sciences sector plays in society and the economy, as well as its ability to strengthen national resilience (to epidemics, for example). It further acknowledges the existing strength of this sector and notes the significant growth-driving potential, pointing out that it "sits at the intersection of healthcare innovation and cutting edge technologies" and contains a wealth of opportunities made possible by "new discoveries, data availability, AI, groundbreaking treatments, personalised healthcare, and innovative manufacturing processes."
Digital and Technologies
The green paper mentions the transformative impact the sector has had on the economy over the last ten years, including due to developments in AI (Artificial Intelligence), as well as its potential to continue to transform the economy over the next decade, as strategic technologies will both disrupt existing sectors and create new ones.
Comment – approach to AI and Intellectual Property
The green paper emphasises that the Industrial Strategy will be focused on creating a pro-business environment, noting that it will take into account both targeted measures and cross cutting policies to tackle barriers to investment across issues such as research and development, data, technology adoption, access to finance, regulation, skills and recruiting international talent.
In particular, the government appears to be alive to the wide-ranging implications AI may have on the economy, with the green paper specifically mentioning the use of AI in the Life Sciences, Digital and Technologies, Professional and Business Services, and Defence sectors. This position has been affirmed in the 2023 AI sector study published on 23 October 2024.
However, we have not yet seen clarity from the government on its approach to AI implemented products and services. Despite speculation, an AI Bill was not announced in the King's Speech in July. Instead, the government appointed Matt Clifford, tech entrepreneur and Chair of the Advanced Research and Invention Agency, to deliver the AI Opportunities Action Plan, which, as the green paper notes, will set out proposals to build the UK's AI sector and accelerate AI adoption across the economy. Perhaps once that is published, the government may finally articulate its policy direction as to the subsistence and enforcement of intellectual property when AI systems are utilised.
Next steps
The government has opened a public consultation on its Industrial Strategy, which will close 24 November 2024. The final Industrial Strategy, including the Sector Plans, will be published in spring 2025, alongside the government's Spending Review.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
