Ways to boost our innovation status

Experts at the first of Computing's Innovation Nation? roundtables agree that UK companies must provide an environment that encourages risk-takers Innovation Nation? is a campaign to examine the role of innovation in the UK economy. Computing, in partnership with Intellect, the high-tech trade association, aims to identify the key steps to ensuring that the UK is able to innovatively exploit technology for social and economic gain. This week, our panel of experts discusses the UK's culture of innovation, how we shape up against some of our global competitors, and the barriers that prevent us taking full advantage of the UK's creative and business strengths. The panel has five recommendations for improving the state of our innovation nation.

Encourage risk-takers and overcome the fear of failure

One of the biggest barriers to innovation is the UK's cultural aversion to risk, and an environment that creates a fear of failure.

For innovators to thrive, there must be an acceptance that it is OK to make mistakes.

'It does not matter if you fail. If you have tried and it does not work, at least you have tried,' says Andrew Mullen, general manager for communications and new technologies at electronics group LG. 'That is something we in the UK are not so good at. We are not so good at taking risk and going in and doing it.'

Philip Hargrave, chief scientist for Nortel in Europe, says ideas that do not work are all part of the innovation process, and that a growing culture of accountability is preventing people taking risks.

'There is a difference between accountability and responsibility. When it goes wrong, it is called risk-taking,' he says. 'If you are going to help things through, a fair number are going to fail. And you have to build that into the process right from the start.'

Gemma Harman, director of strategy and media in the office of the chief technology officer at BT, says institutional silos in companies must be broken down to allow innovators to flourish.

'People cannot cope with the politics or the competing agendas, and they stop. That is the downfall, and prevents us becoming greater at innovation,' she says.

'We are indoctrinated to stick to the usual way of doing things. We need to think differently.'

The IT industry also has to address consumer attitudes to technology, where new innovations are often seen as risky.

'A key issue is about getting market conditions right,' says Martin Ripley, head of e-strategy at the Qualifications and Curriculum Authority (QCA).

'Having sufficient standards and controls to allow consumers to make radical choices; to know the product or innovation they are buying does work, and will do what it says on the package.'

And social considerations are important for overcoming technophobia.

'When we think about innovation, we tend to think about technology,' says Simon Roberts, managing director of Ideas Bizarre, a consultancy that advises on social and cultural issues around technology.

'But a lot of what we see around us is social. eBay is not a technological revolution, it is a social revolution. I would say look social, and the technology will follow.'

Emphasise creative skills in education

The panel agrees that the UK's education system does not adequately prepare school-leavers with the skills needed to become innovators. The focus is on facts and knowledge, but this needs to be combined with creativity and problem-solving skills.

'If you take the UK education system, there is an incredible emphasis on old-style factory thinking,' says Carsten Sorensen, senior lecturer in information systems at London School of Economics.

'It is the cheapest way of churning through the most people in the shortest times. It is bloody boring for everybody involved, but it ensures we force a certain amount of knowledge into their heads, sacrificing the ability to think on their feet, whereas what you have to have a belief in yourself, and the ability to solve problems.'

Julie Meyer, chief executive of investment adviser Ariadne Capital, says children in the US are prepared much more effectively for being entrepreneurs.

'There is room in the UK to explore how you can help children growing up to get comfortable making money and get comfortable selling things early,' she says.

'In the US, you see children with a lemonade stand on the side of the road, or selling Barbie clothes, or old computer disks. They get comfortable doing the transaction, making some money. And once you get that instilled in you, you do not lose it.'

And the QCA's Martin Ripley says our teaching system does not adequately prepare children to take risks.

'We do not teach them well enough to solve problems. We teach them that there are correct answers to problems; that there are algorithmic ways of doing things,' he says. But changing the way education works is a big challenge.

'You are talking about innovation in education, which has the same barriers, obstacles and problems we have,' says Ripley.

Support the innovators

Much innovation is driven by small companies coming up with new ideas - but the wider business environment could provide much more support, according to the panel.

'There is a role for encouraging entrepreneurs and helping founders of businesses become great chief executives,' says Julie Meyer, of Ariadne Capital. 'The UK needs more founders of startups that have what it takes and believe they have what it takes to become great chief executives.'

Antony Walker, chief executive of the Broadband Stakeholder Group, says innovation is not only about big ideas.

'There is a huge amount of innovation that takes place on a daily basis,' he says. 'You need small companies to be constantly innovative, constantly thinking about how they could be doing things differently.'

Ideas Bizarre's Simon Roberts says there must be more support for lone innovators. 'It is very difficult for the lone individual to know where to turn when they have something they think will work,' he says.

'Big organisations can throw advisers and money and expertise at it, but individuals are sitting there thinking: "Maybe I will just stick with my day job." That is a real shame.'

Large firms should help smaller businesses and entrepreneurs, acting as mentors for the next generation of innovators.

'The idea of success mentoring is that you do not leave the person who has come up with the idea in total isolation,' says Jill Ainscough, managing director of broadband specialist Easynet.

'You surround them with people who have done the same sort of things before.' And Robert Taylor, director, government at Cable & Wireless, says even the smallest amount of mentoring advice is worthwhile.

'People in large organisations can actually help innovators, even with the boring stuff they do not know about,' he says.

Moving research into development

OUR experts agree that the UK has improved its technology research base in recent years, especially through stronger links between business and universities.

But the key to successful innovation is taking the output of that research and developing it into products that can be taken to market - and this is an area where the UK has room for improvement.

'We are pumping vast sums into research, but there it ends,' says Intellect director general John Higgins.

'We are structurally geared up to do all that research, with lots of money going into it. And then nothing.'

Nortel's Philip Hargrave says the principles of managing research and taking that to market are quite different.

'We are good at the fundamental end of innovation, the "ideas from nowhere" sort of innovation. But we always say they never get put into practice,' he says.

'How you manage those people who spark from nowhere is totally different to the next stage, where you bring in others who try to develop their idea. We are not good when it comes to making a decision where the money goes, and taking those ideas further.'

QCA's Martin Ripley says that using better models for rewarding innovation would help take research past that first stage.

'It's about being rewarded for that behaviour, so I am encouraged to take the steps, to take risks, to not be punished,' he says. 'There is a lot for us to learn from models of getting better support, better structure, better encouragement, better reward around stage two and stage three in the process.'

Create a culture of innovation

AN area that has not been given sufficient attention in the UK is the role of managers and leaders in creating a culture that promotes innovation.

'There are some four million leaders and managers in the UK, and they have not had the opportunity of understanding and being educated in the application of technology, and how that technology can actually drive their business more effectively,' says Terry Hook, workforce development executive at IT sector skills council e-Skills UK.

'If you do not create the culture where it is allowed to happen, the opposite is true. Management and leadership can stifle and kill innovation.'

People need to be taught how to be successful, and be given suitable role models. 'You need to surround people with success,' says Easynet managing director Jill Ainscough.

This is another area where the UK can learn from its rivals.

'In the US there is a "can do" attitude, a "can do" culture,' says BT's Gemma Harman. 'That needs to permeate more in the UK.'

And managers must not make employees feel their job is at risk if they do not immediately succeed.

'You do not want people to feel they are going to lose their job if they fail,' says Nortel's Philip Hargrave.

'That is what people are worried about. They need to know that their project not going forward is not going to be the end of it.'

What the experts say

Andrew Mullen General manager, communications and new technologies, LG

In south-east Asia, engineers are not only very good engineers, but very good at presenting their ideas. That is the fundamental difference. In the UK, we need to teach that range of skills. It is not just about having expertise in a particular field, but being able to communicate and talk about that.

Robert Taylor Director, government, Cable & Wireless

Do not be shy of saying to people: go and fulfil your dream.

Philip Hargrave Chief scientist for Europe, Nortel

We have this culture of education that there are set, right answers to questions, rather than people to solve problems. We have to teach people how to solve problems. Because throughout their life, they will have problems not knowing what to do next. They have to find out what to do next.

Gemma Harman Director of strategy and media in the office of the chief technology officer, BT

Cross-fertilisation of skills is key. How do we bridge the gaps between the different facilities, topics and themes in our journey of education?

Jill Ainscough Managing director, Easynet

Innovation thinking is not really viewed as part of the professional discipline. It is the responsibility of leaders to get that over to the second or third-level managers.

Simon Roberts Managing director, Ideas Bizarre

Despite all the rhetoric about understanding consumers, I do not think businesses are in touch enough with what is going on outside them in society.

Antony Walker Chief executive, Broadband Stakeholder Group

There is a tendency in our society to think about big ideas that lead to a technology or a new business model that goes through a fairly formal industrialised process. But it is going to be incredibly important for small companies to be competitive and to really go out and compete globally.

Carsten Sorensen Senior lecturer in information systems, London School of Economics

Invest in giving proper conditions for people to experience how to innovate before they are thrown out in the real world.