R&D and innovation after Covid-19: What can we expect? A review of trends after the financial crisis

ERC Insight Paper

Associated Themes
  • COVID-19
  • Innovation

Data from successive UK Innovation Surveys suggests that the proportion of innovation active firms fell 58 per cent during the last recession (2008-10) with parallel falls in product/service innovation (26.6 per cent), process innovation (22.6 per cent). The percentage of firms engaging in less financially demanding wider innovation – e.g. in marketing or strategy – increased by 14 per cent to the recession period.
Recovery speeds varied.The pre-recession proportion of innovation active firms was never fully regained and the proportion of firms doing product/service innovation and process innovation took more than six years to recover pre-recession levels. The percentage of firms doing wider innovation grew throughout the post-recession period.