Inclusive Innovation:
Emerging Activity in Wales
The Learned Society of Wales hosted a roundtable of experts to reflect on the status of innovation in Wales based on the activities of the roundtable experts and discuss potential paths for improving the ecosystem to benefit a more diverse range of stakeholders. This roundtable featured speakers from the Welsh Government, Innovate UK, Cardiff Capital Region, the Learned Society of Wales, and Hywel Dda University Health Board.
Critical insights:
- Implementation and Results of Current Welsh Innovation Strategy: Since June 2023, Welsh Government has supported 135 innovation projects, equating to over £50 million in grant funding, and fostered significant collaborations with Innovate UK, bringing £57 million into Welsh businesses.
- Challenges in Impact Measurement: The lack of comprehensive data collection on innovation initiatives in Wales, particularly inclusivity efforts, hinders the ability to assess their effectiveness.
- Improvements in Collaboration and Coordination: Efforts are being made to create more strategic partnerships, such as the partnership between the Welsh Government and Innovate UK, and to improve communication regarding innovation. However, a need for more awareness about the status of innovation projects and funding persists. Thus, it is essential to continue improving collaboration and coordination to keep activities consistent.
- Support for SMEs and Inclusive Innovation Practices: The importance of supporting SMEs and promoting inclusive innovation was stressed. One mechanism for this goal is expanding funding options and diversifying the bidding application process to attract applications.
- Make Innovation Inclusive: Major organisations across Wales have been working to make their innovation more inclusive. For example, the NHS Health Boards increased their focus on the social and cultural factors of healthcare.
Current Status of the Welsh Innovation Strategy
A key aspect of this strategy is its focus on inclusivity and ensuring that innovation benefits a broad spectrum of the population.
The current Innovation Strategy for Wales emerged from an extensive engagement process aimed at addressing the challenges and needs of the region. A key aspect of this strategy is its focus on inclusivity and ensuring that innovation benefits a broad spectrum of the population. In line with this strategy, Welsh Government has established a dedicated Innovation Support Fund, which targets four mission areas and has supported 135 projects since June 2023. This initiative has allocated £12 million in grant funding, with funded projects generating a total impact worth over £50 million. Additionally, a collaborative plan with Innovate UK aims to develop more successful proposals, leading to increased funding for Welsh businesses. Welsh businesses secured £57 million from Innovate UK in the last financial year. Moreover, Cardiff Capital Region has established a Challenge Fund, which aims to build local wealth and stimulate economic growth through challenges and mission-driven innovation. The fund has three main initiatives: Accelerating Decarbonisation, Improving Health and Wellbeing, and Supporting, Enhancing, and Transforming Communities. Under these three pillars, 12 ongoing collaborative projects between businesses and public sector organisations are being undertaken. These efforts collectively highlight Wales’ commitment to fostering a vibrant and inclusive innovation ecosystem that drives regional economic growth and addresses critical societal challenges.
Improving Support for SMEs
Supporting SMEs is crucial for fostering innovation in Wales. Following a Senedd committee inquiry into the innovation ecosystems in Wales, the Economy, Trade, and Rural Affairs Committee released a report making four broad recommendations:
- a review into the level of Quality-Related funding provided to Welsh institutions
- more analysis of the spread of R&D funding across Wales
- development of a communications plan to highlight the impacts and benefits of publicly-funded research and innovation
- look at what further support can be provided to SMEs.
The roundtable reviewed these recommendations, adding a few additional suggestions to the fourth—look at what further support can be provided to SMEs. For one, it is essential to simplify the UK Research and Innovation (UKRI) bidding application process and other innovation grant processes. Some ways to facilitate these processes include clearer signposting of various funding streams and providing advanced assistance for applicants is also necessary. For example, streamlining application forms and offering alternative application methods, such as video submissions, can help make the process more accessible.
It was also noted that the requirement to provide match funding is particularly challenging for SMEs. Additionally, the availability of non-diluted funding plays a vital role in supporting SMEs, ensuring such organisations can continue innovating without losing equity. The format of AHRC’s Creative Industries Cluster Programme (awarded in Wales to Clwstwr, now continuing as Media Cymru with Strength in Places funding), where a consortium of higher education institutions acts as a gathering space and support mechanism for local SMEs, was highlighted as a model for overcoming some of these challenges. Implementing these recommendations and additional suggestions will significantly enhance the support system for SMEs, thereby driving innovation and economic growth in Wales.
It is essential to simplify the UK Research and Innovation (UKRI) bidding application process and other innovation grant processes.
Social Innovation: Lessons from the Health Sector
The integration of social and technical innovation within the health sector demonstrates the importance of a holistic approach to innovation.
By examining the role of social innovation in the health sector, we can garner valuable lessons for other sectors. Traditionally, the health sector in Wales has been focused on more technical aspects of innovation, such as robot, drug, and medical device development. Often, there has been a focus on the safety and effectiveness of such innovations and the wider factors that could influence their adoption by the health sector have received insufficient attention. These factors include affordability, acceptability to patients and clinical teams, and financial models. This is starting to change, with initiatives that take a more inclusive approach.
The Tritech Institute, a healthcare research venture within Hywel Dda University Health Board established four years ago, exemplifies this change. It moves beyond merely testing the safety and effectiveness of new technologies. Instead, the Institute examines whether healthcare systems and partner organisations will likely adopt these technologies. This work includes assessing the broader factors influencing adoption, such as affordability, user acceptability, intellectual property consideration, and ‘value-based’ contracting. Additionally, it is vital to support the frontline individuals who will be testing these innovations or integrating them into their care pathways in their day-to-day work. The integration of social and technical innovation within the health sector demonstrates the importance of a holistic approach to innovation.
The next frontier in healthcare innovation must involve recognising that a significant proportion of what determines health outcomes sits outside of the NHS – housing, food, pollution – so it is vital not only to consider these factors in health innovation, but also to work together with communities and civic partners with responsibilities in these areas to improve health outcomes in Wales.
Communication and Collaboration: Preventing Duplication of Efforts
Effective communication and collaboration are essential to prevent the duplication of innovation activities and maximise funding opportunities. Several ongoing examples of effective communication and collaboration within the Welsh Innovation Ecosystem exist. For example, the Welsh Government and Innovate UK have been working together to ensure a strategic approach to innovation across regions, publishing a collaborative plan to foster more successful proposals and attract more funding to Wales. This plan encourages cross-sector and cross-border collaboration. Moreover, collaboration between Welsh Government and the four Combined Joint Committees (CJCs) as these evolve to cover the four economic regions of Wales must aim to fill gaps in the innovation ecosystem in complementary ways that play to regional strengths rather than duplicate efforts or adopt a one-size-fits-all approach.
However, there have been instances where communication and collaboration have fallen short, leading to missed opportunities and inefficiencies. Wales can create a more cohesive and effective innovation ecosystem by improving communication and collaboration.
Background: Learned Society of Wales Innovation Roundtables
Over the last two years, the Society has held a series of innovation roundtables, bringing together innovation experts, practitioners, and leaders to help inform and contribute to discussions that may improve innovation policies and practices in and for Wales. This activity programme initially coincided with the Welsh Government’s development of the Innovation Strategy for Wales and associated delivery plans. For 2024, the Society has commenced a new series of innovation roundtable programmes.
In this next phase, the Society is further engaging with thought leaders and practitioners in the field, continuing to develop recommendations to help inform and improve innovation strategies and the innovation environment in Wales. The core new theme for this next phase is “Inclusive innovation,” which is defined in the broadest sense but with particular emphasis on equality, diversity, and inclusion, as well as measuring impact beyond the economy. This second phase will also include a deep dive into a theme from the previous series of roundtables: “Innovation in Small Nations,” an opportunity to share lessons that Wales can learn from other small nations.
All roundtable sessions are conducted under Chatham House rules, and this is the anonymised and unattributed report of critical points from the fourth roundtable.
The Learned Society of Wales is Wales’s national academy for arts and sciences. Its Fellowship brings together experts from across all academic fields and beyond. The Society uses this collective knowledge to promote research, inspire learning, and provide independent policy advice.