TISC PN51 0607

26 July 2007

Creating a Higher Value-Added Economy

Announcement of Inquiry

The Trade and Industry Committee today announced an inquiry examining the role of government in promoting high value-added activity by UK business. This inquiry will build upon the findings of the Committee’s report into Better Skills for Manufacturing and its inquiry into public procurement.

The Committee will particularly focus on the following areas:

• What is meant by a high value-added economy? Which business activities qualify as such?

• How UK business compares internationally in areas such as research and development, creativity and design.

• What can be learnt from the experiences of other countries in this area and how fast other countries are moving up the value chain.

• The extent to which UK business has absorbed new business practices such as lean manufacturing.

• Why some sectors of the UK economy appear to be more effective at embracing value-added activities than others

• The impact on business of government efforts to promote research and development, including the research and development tax credit.

• The progress that has been made on university/business co-operation and knowledge transfer since the publication of the Lambert Review in December 2003.

• Whether business and government interpret innovation too narrowly.

• What the government can do to further promote higher value-added business activities and innovative thinking among UK businesses.

• The impact of nationality of ownership on the location of research and development work.

• The effectiveness of machinery of government arrangements in encouraging innovation and creativity.

The Committee invites written submissions to be sent, as an MS Word document, by e-mail to tradeindcom@parliament.uk with a single hard copy sent to the Clerk of the Committee at the address above by 5pm on Tuesday 23 October 2007. Details of oral evidence hearings will be announced shortly after that date.