Britain's chief financial office, Chancellor of the Exchequer, Gordon Brown, understands the meaning of innovation in the I-Cubed Economy. From the Financial Times of London:
Gordon Brown will use Wednesday's Budget to tackle the challenge posed by other emerging market economies such as China, by commissioning a review into how Britain's creative industries can help its struggling manufacturers.
The chancellor will ask George Cox, chairman of the Design Council, to examine how the UK's expertise in advertising, software, the media and universities can be exploited to boost industrial competitiveness. Mr Cox, former head of the Institute of Directors, will report in time for this year's pre-Budget report.
The review is to be accompanied by a study into the economic potential of creativity and £10m or more of extra funding for the Arts Council, for training.
I have been arguing for a long time that innovation is more than just science and technology. (See National Innovation Policy: An Urgent U.S. Need.) Nor is the solution simply building up the "creative" sectors. As the story about Brown notes:
He is concerned that too few businesses are exploiting the expertise of creative industries. His plans include a new design centre in Newcastle.
"The chancellor recognises that, in the years ahead, manufacturers must move towards high value-added and creative products to unlock new markets," a Treasury official said.
Infusing creativity and innovation into the manufacturing sector is the path toward prosperity. It is heartening to see that at least one politician gets it.
Brown's speech and the full report is now available at HM Treasury's web site:
http://www.hm-treasury.gov.uk/budget/budget_05/bud_bud05_index.cfm
In addition to the speech, look at Chapter 3 of the full report on "Meeting the productivity challenge"