Could Theresa May's 'modern' industrial strategy be a post-Brexit boon for the UK's creative and tech industries?

Self-styled as a “modern,” industrial strategy the greenpaper was launched during the leader's first regional cabinet meeting in Manchester and will be followed by a public consultation.

Some proposals in the paper are likely to change following voter feedback, however currently the tech and creative industries will be among the first handful of sectors to benefit from her renewed take and initial reaction to the May's outline has been mixed.

"With this announcement, our government’s willingness to intervene to nudge and direct industrial success has finally broken cover. It can be great news or it can be a disaster. It all depends how well it is executed," muses Wayne Guthrie, co-founder of innovation consultancy Fearlessly Frank.

Investing in science, research and innovation

May's plan has set out ways the government can provide support to businesses by addressing regulatory barriers, agreeing trade deals and helping to establish institutions that encourage innovation and development.

Her "bold and ambitious" blueprint for Britain's EU exit was last week met with reserved optimism by the country's advertising industry, and today's revelations are no less important.

The first pillar of the strategy revolves around further investment in science, research and innovation.

Following a £4.7bn boost to research and development funding approved by May last year the government has said it will invest £170m into creating new institutes of technology. It has made a commitment to fund the research and development of technologies such as AI; something that's already been widely applied in marketing circles.

Francis Turner, UK managing director at ad tech platform AdYouLike believes the funding is to be welcomed but thinks tech companies should retain control over the direction of their business.

“As the government has already admitted,” he says, “its proposed approach mirrors what is already happening in some industries, whereby individual companies and trades bodies are driving cutting edge innovation.”

The University and College Union's (UCU) general secretary, Sally Hunt, said that the money set aside for developing tech talent at new institutions was "a drop in the ocean" that would do nothing to solve the funding crisis in further education.

"If the government wants to support technical education it should invest in our further education colleges who desperately need thousands more teachers rather than another set of gimmicks," she added.

There will be a consolation on how the government helps to commercialise and develop innovation, but another one of May’s focuses will be creating the right institutions to “bring together sectors and places,” ie – decentralising industry away from London.

Daniel Harvey, chief creative officer at digital agency Zone said he is in two minds about the news but observes that the plan to focus on growth areas like AI will help the UK keep up with and in some instances outpace other countries.

He also acknowledges that areas like Cambridge have been a hotbed for AI. “This plan shows a more local, inclusive approach,” he continued, adding: “Hopefully we can see cities such as Manchester, Bristol and others benefit too. Creating multiple sector centres would show real commitment.”

More money will be ploughed into the Conservative government’s so-called ‘Northern Powerhouse’ with May committing to improve infrastructure services as part of the plan, particularly in areas where lack of it drives “regional disparities.”

The prime minister said: "Our modern industrial strategy is a critical part of our plan for post-Brexit Britain. It will help to deliver a stronger economy and a fairer society – where wealth and opportunity are spread across every community in our United Kingdom, not just the most prosperous places in London and the South East."

Part of this rebalancing act will include updgrades to the M60 which connects the North West Quadrant as well as rail links.

Developing skills

Harvey’s concern though, lies in the government’s emphasis on the development of science, technology, engineering and maths (STEM) skills when it should also be committing to invest in arts training.

“AI experiences aren't going to fulfil their promise without designers and writers. It will be key for the business partners in the mix to communicate a STEAM message to Westminster. Without those skills involved brands will be slow to adopt. The creative industries need a seat at the table in these conversations.”

May has enlisted industry leaders to carry out work on early sector deals to address challenges and opportunities across various industries. ITV chairman and outgoing chairman of Arts Council Sir Peter Bazalgette will oversee strategy for the creative industries, while Ford's chief technical officer Richard Parry-Jones will oversee the transition to ultra low emission vehicles.

The Creative Industries Federation (CIF), a group which brings together all of the UK’s arts, creative industries and cultural educators, said the move to include them all in the consultation was a radical departure from the government's previous approach and could potentially insulate the sector from some of the immediate challenges of Brexit.

The fact that the creative industries were formally recognised in the strategy means they do indeed have a seat at the table and was hailed as a sign of "a new, bold and imaginative understanding of business in the 21st century," by CIF.

Sir John Sorrell, the federation's founder and chair, acknowledged that May's greenpaper was "just the start," but said: "Recognition of the economic contribution and the potential for growth across the whole of the country is exactly what we wanted to achieve."

Supporting business to start and grow

On top of tech, May has outlined broadband, transport and energy as areas which will help "align central government infrastructure investment with local growth priorities," but her plans could also offer a boost for upstarts.

The greenpaper points to figures from the Organisation for Economic Co-operation and Development (OECD) which show the UK ranks third in class when it came to the number of startups. However, May said that to raise productivity the government will need to marry startup culture with support and investment to faciliate growth.

Some industry experts are more cynical about this with Duke's Steve Stokes saying: "I’m hoping that there is a genuine commitment from the government and that this isn’t merely a well-timed press release to try to placate nervous uncertainty (and most likely pro-Europe) business leaders."

He observes that success in this space is likely to come from a "perfect storm," of related factors including but not limited to the development of the existing digital community, affordable office space, and enthused investors.

Brexit could potentially mean that UK-based accelerators will have a smaller talent pool to recruit from, and for Stokes another big question is whether the government will be able to provide tax break incentives for startups, "especially outside of London."

Whatever lies ahead, Fearlessly Frank's Guthrie believes that the free market economics initiated by Margaret Thatcher overran their sell-by date "at least 15 years ago," and points out that May's greenpaper at least proposes an alternative.

"'Letting the market decide' failed and consolidated industrial power into the hands of the few, who took the profits and ran. A market economy cannot think long term," Guthrie adds.

"The opportunity is huge for the creative industries. Growth and optimism need expression and presentation to the rest of the world," he adds. "Ideas are nothing until they are expressed in a way that other people understand,it should be a busy few years.

Additional reporting by Jen Faull.