China’s rise presents a serious challenge to liberal democracies. It is imperative that science and technology be advanced. When they are willing to invent, Western economies possess a deep capacity to innovate. This is evident by the rapid development COVID-19 vaccinations that are safe and effective. What can be done to maintain this momentum in a wide variety of areas, even when we don’t face an acute crisis.
The United States is leading the charge in many aspects. Soon after his election, President Joe Biden elevated Director of the White House Office of Science and Technology Policy from Cabinet to a position of seniority. He also appointed Eric Lander (renowned geneticist and molecular biologist as well as mathematician) to the post. The US Innovation and Competition Act (passed by the Senate on June) matches this signal with action. It promises $250 billion in funding for emerging technologies such artificial intelligence, robotics and quant computing.
America is serious about avoiding a world in which the West relies on authoritarian regimes for its technology. It has done so in an effort to prevent that from happening. However, it is unclear what role the United Kingdom (the smaller partner in this new Atlantic Charter, signed in June by Boris Johnson, UK Prime Minster) will play in securing technological lead for the West.
The UK government is pleased to announce its plan to support high risk, high-reward research by creating an Advanced Research and Invention Agency. This agency will be modeled on the US Defence Advanced Research Projects Agency. The government has indicated that the country’s exit from the European Union will likely cause it to adopt an even more forward-looking position on gene-editing and decrease bureaucratic obstacles for researchers.
However, the UK is not doing enough to adapt post-Brexit technology and science strategy. It cannot match China and the US for either population or financial wealth. Policymakers shouldn’t assume other powers aren’t moving. India’s Deeptech Market is rapidly developing, while the EU is increasing tech investments and reforming its outdated stock option tax treatment. This removes an obstacle that has held back tech entrepreneurs for decades.
Rishi Sunak (UK Chancellor of the Exchequer) has made a commitment to increase government spending on research and development to PS22billion ($31billion). This is an indication that what is considered “big” in the UK is small compared to China and the US. Therefore, the UK needs to make this money go even further. It needs to make sure that policies and institutions are used as multipliers. This in practice means developing greater risk appetite and experimenting with new ways to allocate research funds.
The country already has a top-notch research infrastructure. However, funding and the time of researchers is too often diverted towards bureaucratic tasks. Fast Grants could be a promising alternative. They were launched in April 2020 by Patrick Collison, cofounder of digital payments firm Stripe and Tyler Cowen from George Mason University to provide emergency funding during the COVID-19 outbreak. This scheme was able to fund 260 projects in the last year by providing $50 million to 260 grants. The application process took just 30 minutes and could be completed within 48 hours. Horizon Research Fellowships, which are long-term grants that go to promising researchers, is another idea we have presented in a recent essay.
UK must engage with pioneer technologies that will change society in the future. The country’s experience in life sciences, climate technology, and other areas should provide a rich source of basic research that will yield innovative solutions for human and planet health.
As the UK gains a competitive advantage in this sector, it will need the opportunity to make a difference from the EU and be able to become an early adopter nation that effectively adopts and diffuses innovative technologies. Innovative people from all walks of the globe will flock to the UK to remove barriers that keep markets closed in areas such as drone delivery and lab-grown food, and autonomous cars.
To ensure that the UK honors its commitment to the Atlantic Charter and works with the US to address international challenges, it must live up to the promise to be a global Britain. The UK still has the ability to produce top-quality innovations. However, it cannot capitalize on that potential by becoming more inward-looking and isolationist. With a renewed focus on innovation at home, policymakers should also be committed to building global coalitions that can scale and ensure future growth.
The original 1941 Atlantic Charter, which was signed by Winston Churchill, UK Prime Minster, and Franklin D. Roosevelt, outlined their goals for the postwar international order. This foreshadowed an age of relative British decline and a golden era for American growth. The UK must understand that technology and innovation are essential for its future prosperity.