Innovation in the UK Retail Sector - Nesta

Recommendation 1:
Innovation in the UK Retail Sector
Improve the effectiveness of innovation-related support activity within Government.
Desired outcomes: Better integration and clear and simple communication between the innovation-related
information, education and horizon scanning services and networks funded by
Government, and the retail sector. An improvement in Government credibility with
the sector. The provision of a ‘single voice’ for retailing within Government.
Background: The informational activities undertaken by Government, funded agencies of
Government and academics that are relevant to retailers are poorly integrated and
often poorly aligned with the commercial priorities of the sector. For example, the
considerable numbers of initiatives which arise from KTN activities are not
communicated in a coherent or appropriate way to retail firms. Such firms (even the
largest) also lack the resources to become aware of or respond to ad hoc initiatives.
Evidence: Poor attendance at events, lack of access to key retail managers for advice on policy
formulation, limited retailer awareness of and participation in projects, particularly
amongst smaller firms – but also within some large businesses.
Analysis: Three specific actions flow from this desired outcome:
Conclusion/Next
Steps:
1.1 A more systematic approach to co-ordinating information & expertise in
Government & NDPBs (e.g. KTNs, Envirowise, Chemistry Leadership
Council) which mimimises bureaucracy and improves access. The provision of
a ‘one stop shop’ hosting information on initiatives, support and services
available to the sector, especially to SMEs.
1.2 A better mechanism for identification, prioritising and channelling of
commercial, innovation-related initiatives and research to firms (a ‘single
voice’).
1.3 Encouragement of longer term horizon scanning that is more relevant to
retailing: facilitating the showcasing of new ideas with commercial potential
and supporting projects ‘on the margin’.
The benefits of action in this area includes the demonstration of better value for
money from existing Government activity and the possibility of mutual agreement
between the sector and Government on priorities in innovation-related support. The
risks of inaction are that the fragmented nature of knowledge-broking activity of
relevance to retailers combined with retailers’ limited human resources leads to a cycle
of failure in support. The sector becomes de-emphasised in future work by agencies
such as the KTNs and a mindset develops amongst retailers that such Government
activity is not helpful or relevant to their commercial activities.
Identify an appropriate mechanism or intermediary to channel innovation-relevant
initiatives simply and efficiently to the correct individuals within the sector and to
prioritise those of most commercial relevance to the sector. Develop appropriate KPIs
to measure success (e.g. impact on smaller, hard-to-reach SME sector; direct attribution
of innovation to Government initiatives). Evidence that the sector was responding
with purpose and conviction to any integrating efforts by the Government would be an
important demonstration of commitment.
Page 60