Benchmarking the UK’s industrial andinnovation performance in a global context Institute for Manufacturing, University of CambridgeMarch 2026 Table of contents List of charts1Introduction3Contributors and acknowledgements5Executive summary6Theme 1: Structure and performance of the UK economy12Theme 2: Investment in innovation23Theme 3: Industrial performance – UK electronics and electrical equipment34Theme 4: Science and engineering workforce51Theme 5: Technology scaleup60 List of charts Theme 3: Industrial performance–UK electronics and electrical equipment Theme 4: Science and engineeringworkforce Theme 1: Structure and performance ofthe UK economy Chart 1.1. Structure of the UK economy, 2024Chart 1.2. Top 20 industries by labour productivity, 2007and 2024Chart 1.3. Top 20 industries by productivity growth,1997–2024Chart 1.4. Top 20 industries by contribution toproductivity growth, 1997–2024Chart 1.5. Top and bottom 10 industries by employmentgrowth, 1997–2024Chart 1.6. Annual earnings and employment shares byindustry, 2015–2025Chart 1.7. Earnings dynamics, 2015–2025Appendix 1.1. Sectoral group classification andstatistical codesAppendix 1.2. Decomposition of productivity growth Chart 3.1. UK electronics and electrical equipment (E&E)manufacturing sectors – contribution to the UK economyChart 3.2. Electronics and electrical equipment (E&E)manufacturing sectors – value added, employment, andproductivityChart 3.3. UK electronics and electrical equipment (E&E)manufacturing sectors – value addedChart 3.4. UK electronics manufacturing sector – valueaddedChart 3.5. UK electrical equipment manufacturing sector– value addedChart 3.6. UK electronics and electrical equipment (E&E)manufacturing sectors – employmentChart 3.7. UK electronics manufacturing sector –employmentChart 3.8. UK electrical equipment manufacturing sector– employmentChart 3.9. UK electronics and electrical equipment (E&E)manufacturing sectors – labour productivityChart 3.10. Electronics and electrical equipment (E&E)manufacturing sectors – trade balanceChart 3.11. UK electronics and electrical equipment(E&E) manufacturing sectors – trade balanceChart 3.12. Electronics manufacturing sector – globalexport market shareChart 3.13. Electrical equipment manufacturing sector –global export market shareChart 3.14. UK electronics and electrical equipment(E&E) manufacturing sectors – business spending onR&D (BERD) Chart 4.1. The UK Industrial Strategy skills needChart 4.2. Graduates in STEM and health disciplinesChart 4.3. Field of study among tertiary-educated adultsChart 4.4. Relative earnings of tertiary-educated adultsChart 4.5. Gender pay gap by field of studyChart 4.6. Skills needsChart 4.7. Missing skills in the UK engineering sector Theme 5: Technology scaleup Chart 5.1. Business enterprise expenditure on R&D(BERD) by type of researchChart 5.2. Gross domestic expenditure on R&D (GERD)performed by the governmentChart 5.3. Share of business enterprise expenditure onR&D (BERD) funded by governmentChart 5.4. National applied research organisations bytotal fundingChart 5.5. R&D expenditure by the world’s top 2,000 firmsChart 5.6. UK Patent Box tax relief claimed, tax year2023–2024Chart 5.7. Number and sectoral distribution of unicornsin the world, 2025Chart 5.8. Location of initial public offerings (IPOs) andacquirer’s headquarters for UK-based university spinoutsChart 5.9. Acquisitions in the UK by foreign companies Chart 2.1. Global expenditure on R&DChart 2.2. R&D intensity: international comparisonChart 2.3. UK business research and developmentChart 2.4. Government financial support for business R&DChart 2.5. World rank of selected innovation outputsChart 2.6. Scientific publications by science fieldChart 2.7. Unicorns in the worldChart 2.8. From research to market: scientificpublications versus high-tech exports performanceChart 2.9. Top R&D-investing companies in the world What makes the report different? The aim of theUK Innovation Report is to facilitate policy discussions on innovation and industrial performance – and the interplay betweenthem. While numerous sources of data on the topic of innovation exist, theUK Innovation Report makes a contribution by bringing together, ina single place, innovation and value-added indicators in a concise and accessible format. Instead of structuring the report according to traditional input and output indicators, the intention with the report is to include data that providesrich quantitative representations of the vitality of both the UK’s innovation activity and its industrial performance in an international context. An important theme throughout the report is the analysis of sectoral data to better understand the drivers of national performance and providemore granular policy insights. While the report does not make specific policy recommendations, it does highlight areas where additionalevidence and policy action may be required. ◼To review the UK’s innovation and industrial performanc