London Daily

Focus on the big picture.
Saturday, Nov 22, 2025

Britain is running out of new ideas and it's killing productivity

Britain is running out of new ideas and it's killing productivity

It is no secret that Britain is in a productivity slump. The statistics should be familiar. In the decade before the pandemic, productivity grew at just 0.3 per cent per year. Before the financial crisis, it grew at 2 per cent. That might sound like an abstract or wonkish concern, but it is the difference between wages doubling every 35 years and wages doubling every 231 years.
In the short run, there are clear ways to lift our productivity levels closer to American or German levels. To their credit, the Government is implementing many of them. Reforming the planning system, a super-deduction for investment in productivity-boosting machinery, and a Help to Grow scheme to improve management skills will all help.

The above policies will bring us closer to the frontier, but pushing the frontier forward consistently is what really matters. In a way, the solution is simple: have more ideas. But it’s easier said than done.

When economists from Stanford and the LSE investigated whether ideas are getting harder to find, the answer was a clear “yes”. We now need eighteen times as many researchers to achieve a doubling of computer chip density, the famous Moore’s law, than we did in the 70s. Economists Ben Southwood and Tyler Cowen find similarly concerning trends across a range of scientific fields. We are getting fewer transformative discoveries even though the number of PhD researchers has surged over the past few decades.

If we can’t figure out how to reverse these worrying trends, then we will remain stuck. Our ability to solve our greatest problems from climate change to pandemics will be limited.

The Nobel Prize-Winning economist Robert Lucas once said of economic growth: “The consequences for human welfare involved in questions like these are simply staggering: once one starts to think about them, it is hard to think about anything else.”

In a foreword to a new essay collection, Patrick Collison, the co-founder of Stripe, observed that “many of the most important considerations that will determine the long-run rate of economic growth are not the foremost policy issues of our day.” How long do journalists spend reporting on the way we fund research? Even Dominic Cummings struggled to get it on the agenda.

It’s a concern shared by former Prime Minister Tony Blair. On technology he writes in the preface that “too often policymakers either ignore its importance or focus on questions like those to do with privacy which are important but limited; when the real debate should be around how we use technology to usher in a new advance for humankind.”

There may be a silver lining to the neglect: there is no culture war or partisan fight to worry about. In many cases, the low-hanging fruit has not been picked.

Take the way we fund scientific research for an example. A few recent studies suggest that radically different funding mechanisms could deliver substantial gains and liberate researchers from bureaucratic grant applications. Yet, the topic is under-studied. We ironically don’t apply the scientific method to science funding itself.

Or look at our approach to high-skilled immigration. We take a “build it and they will come” approach. At a stretch, we might create specialist visas. But we are in competition for global talent. Why not take a leaf out of the Premier League’s book? They invest serious money into scouting the next Neymar, Messi, and Salah. We could take a similar approach to scientific talent. The Government could fund scholarships at top universities for high-achievers at the International Math Olympiad.

These are just two ideas. We also need to make government procurement more open to new ideas, digitise the state to eliminate unnecessary frictions in civic life, and promote innovation to the next generation – through a 21st Century Great Exhibition.

In some fields, we have seen dramatic technological progress in the past year. CRISPR gene-editing is curing fatal genetic disorders, mRNA vaccines are bringing an end to the pandemic, and falling sequencing costs are enabling us to track new variants. Each technology is in its infancy, but has the potential to transform our lives. Imagine a world where every genetic disorder was easily treatable, where routine blood tests allow us to stop cancers at an extremely early-stage, and where infectious diseases are stamped out altogether.

It’s a future that is within reach. But we should be more impatient, more urgent. Boris Johnson wants to make the UK a science superpower. It’s the right rhetoric, but now is the time for action.
Newsletter

Related Articles

0:00
0:00
Close
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
Caribbean Reparations Commission Seeks ‘Mutually Beneficial’ Justice from UK
EU Insists UK Must Contribute Financially for Access to Electricity Market and Broader Ties
UK to Outlaw Live-Event Ticket Resales Above Face Value
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
German Entertainment Icons Alice and Ellen Kessler Die Together at Age 89
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
Popeyes UK Eyes Century Mark as Fried-Chicken Chain Accelerates Roll-out
Two-thirds of UK nurses report working while unwell amid staffing crisis
Britain to Reform Human-Rights Laws in Sweeping Asylum Policy Overhaul
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
×