Tech sector cheers as May recognises AI, robotics and 5G in post-Brexit industry plan
Today's Industrial Strategy focuses on plugging the STEM skills gap and investing in emerging technologies
Tech giants such as HPE, Cisco and Dell EMC have welcomed the publication of the government's post-Brexit Industrial Strategy, hailing the talk of beefing up investment in emerging technologies such as robotics, 5G and artificial intelligence.
Prime minister Theresa May used her first regional cabinet meeting today to launch her Industrial Strategy, which the government hopes will improve living standards and the country's productivity.
She said that the Brexit referendum was just not a vote to leave the EU, but an "instruction to the government to change the way our country works", prompting the industrial review.
Investment in technology was a key part of the announcement and an accompanying green paper, which poses specific questions it hopes the industry will answer as part of a consultation.
Smart energy technologies, robotics, AI and 5G networks were pinpointed as areas where the UK has strengths in research and development, which could be supported further through a new Industrial Strategy Challenge Fund. The new scheme will focus on "potentially large" or fast-growing areas of the market in which the UK has a strong background.
Another of the 10 pillars of the strategy was addressing the STEM skills gap. The report said: "We must help people and businesses to thrive by ensuring everyone has the basic skills needed in a modern economy; building a new system of technical education to benefit the half of young people who do not go to university; boosting STEM skills, digital skills and numeracy; and by raising skill levels in lagging areas."
But the report acknowledged that technical education has been neglected, and that a "bewildering complex array" of qualifications muddies the waters for students and employers alike.
With this in mind, the government pledged to commit £170m of capital funding to create new technology institutes which deliver high-level STEM education, and promised a "joined-up, authoritative" review of the specific skills gaps the UK faces now, and in the future.
Another of the 10 points was a pledge to improve government procurement, with cloud services framework G-Cloud singled out as a success story so far. It added that procurement policy is heavily shaped by EU law at the moment, meaning many procurements are required to go through the OJEU process.
"Historically central government has had limited visibility of the supply chains of the key companies it contracts with, so it has lacked a full view of the impact of its procurement decisions on UK supply chains," said the report. "We are taking action to improve this, but there is more to do."
Industry view
Key players in the technology sector welcomed the government's announcement today.
Antony Walker, deputy CEO of TechUK, said: "In today's economy, the tech sector is driving innovation and boosting productivity across all industries. In tomorrow's economy, every sector will be a tech sector. That is why the government is spot on to place investment in tech at the heart of its modern Industrial Strategy. The industries of the future will be tech enabled and tech driven - digital transformation is the future."
Marc Waters, HPE's UK boss, agreed and said: "HPE welcomes the publication of the Industrial Strategy green paper and the focus being placed on digital technology and the development of a modern industrial strategy.
"The digital economy is creating a world where everything computes - from secure datacentres to mobile devices and the Internet of Things - and we welcome the support and investment by the government to encourage our businesses in the UK to realise the benefits from these new technologies."
Alison Vincent, CTO of Cisco UKI, specifically welcomed the STEM education announcements.
"We believe that today's investment will help to shift perceptions and inspire the younger generation to take part in STEM subjects from an early age," she said. "Furthermore, by encouraging business and educators to work collaboratively with the government, we can clearly communicate the amazing opportunities these skills can present to young people and embrace digitisation in every region of the UK."
Rob Lamb, cloud business director at Dell EMC UKI, agreed and said: "With the rise of technologies such as robotics and AI, industry can no longer afford to ignore the skills gap. Having the skills in place to make use of this technology and data will be fundamental to the next stage of economic development and the transformation of all business and industry sectors. However, the government's Industrial Strategy must consider how to spread the benefits of technology across the whole of the country through the cross-pollination of data."
Paul Shannon, newly crowned CEO of ANS Group, also welcomed the announcements.
"Investment in important infrastructure, full fibre networks and connectivity is crucial for business success and will certainly even up growth across regions in the UK. We hope that this news, combined with the chancellor's pledge to improve technology and 5G access in November, will bolster the technology sector across the north west and the UK as a whole."