Inclusive Innovation for Wales

After bringing together some of Wales’s leading experts in academia, business, and the public sector, the Learned Society of Wales shares a vision of innovation for Wales that is inclusive and open to all. Read on to discover how civic, research, public sector and industry organisations can work together to build an inclusive innovation ecosystem that benefits all of Wales.

This year, the Learned Society of Wales has convened a series of roundtable discussions on innovation, gathering experts to help inform and improve policies in Wales. The focus on inclusivity means a collective effort to work towards an innovation system that benefits all segments of society.

What is inclusive innovation?

Innovation is how new ideas are developed and transformed into better products, services and ways of working. This could be anything from a new household technology to a smoother bureaucratic process. 

Through the roundtable series, we identified four key features of inclusive innovation:

  • Dismantling barriers boosts the participation of under-represented groups
  • Peripheral regions are included in, and benefit from, innovation and growth
  • “Mundane” innovation improves everyday life and essential services
  • Citizens and civic actors are centred, and initiatives tailored for the locality.

But what does this look like in practice?

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Dismantling barriers

Complex and disjointed funding systems are a perennial issue for organisations with innovative ideas. This obstacle is felt more keenly by small businesses, which represent the majority in Wales.

Effective communication and collaboration help to prevent the duplication of innovation activities and maximise funding opportunities.

These are less likely to have large teams that can wade through the terms and conditions of disparate support schemes and write competitive applications. It also amplifies the disadvantages experienced by minoritised groups, who may have less access to informal peer support than those familiar with the system.

Some ways to reduce these obstacles include clearer signposting of various funding streams, streamlining application forms, removing requirements for match funding, and protecting SME equity.

Effective communication and collaboration help to prevent the duplication of innovation activities and maximise funding opportunities. For example, the Welsh Government and Innovate UK have been working together to ensure a strategic approach to innovation, publishing a collaborative plan to foster more successful proposals and attract more funding to Wales. 

Peripheral regions

Understanding the dynamics between the core economy (urban areas) and the periphery (towns and rural areas) is crucial for Wales. The core economy often drives sectors that produce goods and services for export, benefiting from higher investment and innovation. In contrast, the periphery relies heavily on the foundational economy such as healthcare, education, housing, transportation, and utilities. These services are typically non-tradeable, meaning they are consumed locally and not subject to international trade. Peripheral regions are often viewed as places where innovation stagnates. However, innovation in everyday life allows for the periphery’s attributes to become assets, enabling a distinct and valuable form of innovation.

Mundane innovation

This is where “mundane innovation” comes in. There is a persistent misconception that big tech is the sole driver of innovation and economic growth. This often overshadows the importance of innovation that improves everyday life and essential services. Mundane innovation involves enhancements in the essential services and infrastructures, such as healthcare, education, and transportation, that support daily life and community well-being.

It is important that research and innovation organisations develop a tailored civic mission based on a deep understanding of their area, its communities and its uniqueness.

These are the everyday goods and services of the foundational economy that create meaningful impacts within communities, especially those in peripheral regions. If you are interested in the concept of mundane innovation, you can read this article for more detail.

Citizens and civic actors

Research and innovation organisations can make a meaningful difference for the people on their doorstep by engaging citizens, partnering with civic entities, and maximising their position as anchoring institutions within a place. It is important that research and innovation organisations develop a tailored civic mission based on a deep understanding of their area, its communities and its uniqueness. You cannot lift a strategy from Glasgow and drop it in Swansea – but we can of course learn from each other, like in our deep dive into the Scottish Innovation system.

Researchers and innovators often make the mistake of viewing civic engagement as an act of charity or corporate responsibility. Done right, civic engagement can lead to knowledge creation, improved inclusivity, cutting-edge innovation, and improved adoption.

What next?

Obstacles remain. They prevent Wales from achieving its full potential in inclusive innovation. Outdated regulatory systems are out of step with the ambitious legislature, and many areas of the public sector remain averse to risk and new ways of working. Moreover, in times of scarcity, organisations often retreat to business as usual, the opposite of innovation.

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But there is some encouraging evidence of progress for Wales, with an innovation strategy that prioritises fairness and green growth. The Innovation Support Fund has supported over 135 projects between June 2023 and June 2024. This has allocated £12 million in grant funding and generated impact worth over £50 million. In ensuring inclusive innovation, the role of the newly formed combined joint committees across the four economic regions of Wales will be crucial alongside that of Welsh Government. These should seek to develop locally-centred activity that delivers a suitably tailored ‘place-based’ view of inclusive innovation in each region.

While Wales has laid the foundations for innovation, we need to tell our innovation story more effectively and bring more parts of the system on board for a more resilient and inclusive innovation ecosystem of the future.

Read the full report: Inclusive Innovation for Wales – The Learned Society of Wales.

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Fiona Dakin is Head of Public Policy at the Learned Society of Wales.

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