Solving these isn't impossible. In fact, we detail a series of case studies where other developed economies have found solutions to just these sorts of problems. See for example this on US & Singapore's innovation pathways 5/

So, what is stopping us doing this now? The barriers won't surprise you, they are common ones we hear about across the NHS & public sector more widely. Together though these have created a system which actively discourages scaling innovation 4/

The problem then isn't necessarily developing innovations themselves but scaling & adopting them. To better understand the specific benefits we looked at 4 high impact conditions & the benefits from scaling existing approaches already used elsewhere 3/

We know the UK has great universities & research institutes but we struggle to translate this into improved patient & commercial outcomes. From 2015-23, Denmark saw 13% growth in its biopharma sector while US’s healthtech & medtech sectors grew 7%. Across these UK grew 5% 2/

This is an interesting (& somewhat crazy chart) from the OECD Global Dept Report out today. Huge amounts of additional borrowing from corporates not shifting the dial on investment. www.oecd.org/en/publicati...

Thankfully, there are steps that can be taken to smooth demand & strengthen supply chains. Needs action from public & private sector. Part of this is a strategic sense of priorities, but also doing some of basic better in the industry. 8/

Third, projects will face new forms of complexity (be that technical, regulatory, political or economic). We expect next 5 years to see more large projects. Which are inherently more complex due to all the moving parts & long supply chains. 7/

Second, there is a mix of chronic & acute skills shortages. e.g. number of welders employed has declined by 40% in 20 years. While we estimate the grid upgrade will require 3x-4x the number of high voltage line workers currently in the UK. 6/

For some this will sound familiar. In the past demand hasn't materialised & supply has managed to respond to some extent. But there are 3 reasons why we think this time is different. First, we haven't seen an uplift of this size across so many sectors since post war period 5/

Why won't market alone solve this? There are a mix of market failures & inefficiencies, as well as the fact that some of these markets are heavily regulated. Price signals do not reflect consumer or national demand/need. 4/

This will lead to significant overlaps in terms of demand for skills & resources, both in timing & location. We've mapped the demand below. Again a big opportunity for many areas to see more investment, but they need to be set up to deliver 3/

Key question is whether supply chains can deliver – right now they can’t. Our supply chains have degraded due to years of underinvestment & feast/famine approach. Some sectors (renewables, water, airports) could see huge uplifts 2/

🚨New research🚨 out today from us at BCG Centre for Growth – based on current project pipeline next 5 years could see £700-£900bn invested across 8 key sectors. This is 2.1x-2.7x level in past 5 years. Huge opportunity for the UK. But... 1/ www.bcg.com/united-kingd...