Sue Pritchard’s Post

https://lnkd.in/eYzqPSt4 The UK government has launched its highly-anticipated Industrial Strategy, ahead of a significant investment summit taking place in London on Monday. Unveiling its plans earlier today, the government said the Industrial Strategy ‘will drive long-term growth in key sectors that is sustainable, resilient and distributed across the country’, with the Business Secretary promising to ‘give investors a ten-year plan to choose Britain’. The government’s Industrial Strategy will focus on eight ‘growth-driving sectors’: advanced manufacturing; clean energy industries; creative industries; defence; digital and technologies; financial services; life sciences; and professional and business services.

🚀 Clearing regulatory barriers to boost tech innovation 🚀 💡 The new @Regulatory Innovation Office (RIO) has been launched to accelerate access to groundbreaking technologies - a significant step forward in the Government’s plans to help modernise regulation and reduce the barriers that could slow innovation. 📢 As the PM Keir Starmer told attendees at the Government’s Investment Summit on Monday: “We will make sure that every regulator in this country, especially our economic and competition regulators, takes growth as seriously as this room does”. Increasing resources for regulators which face particular challenges in keeping up with technological change is a recommendation in the new report from the BVCA’s Investment Commission, published jointly with Public First which contains recommendations for what the Government can do to remove key barriers to investment here https://lnkd.in/e8qg843s The focus of the RIO will be to inform the government of regulatory barriers to innovation and set new priorities for watchdogs. This will cover four rapidly advancing areas: 🧫 Engineering Biology 🌌 Space 🏥 AI & Digital Healthcare 🎛️ Connected & Autonomous Tech These are all sectors where BVCA members are key investors and are pleased to see the Government’s support and ambitions for growth. The British Private Equity & Venture Capital Association (BVCA) welcomes this new body and the Government’s ambitions to modernise regulation and tackle barriers to #privateequity and #venturecapital investment. We look forward to working with the Department for Science, Innovation and Technology to help drive investment and unleash the UK’s innovative sectors. Feryal Clark Peter Kyle

𝗧𝗵𝗲 𝗨𝗞’𝘀 𝗠𝗼𝗱𝗲𝗿𝗻 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝗶𝗮𝗹 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 - 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗶𝗻𝗴 𝘁𝗵𝗲 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗳𝗼𝗿 𝗜𝗻𝘄𝗮𝗿𝗱 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗔𝘁𝘁𝗿𝗮𝗰𝘁𝗶𝗼𝗻 𝘛𝘩𝘦 𝘜𝘒 𝘨𝘰𝘷𝘦𝘳𝘯𝘮𝘦𝘯𝘵’𝘴 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘪𝘢𝘭 𝘴𝘵𝘳𝘢𝘵𝘦𝘨𝘺 𝘨𝘳𝘦𝘦𝘯 𝘱𝘢𝘱𝘦𝘳 𝘴𝘦𝘵𝘴 𝘰𝘶𝘵 𝘢 𝘧𝘳𝘢𝘮𝘦𝘸𝘰𝘳𝘬 𝘧𝘰𝘳 𝘨𝘳𝘰𝘸𝘵𝘩 𝘢𝘯𝘥 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘢𝘵𝘵𝘳𝘢𝘤𝘵𝘪𝘰𝘯 𝘵𝘩𝘢𝘵 𝘪𝘯𝘸𝘢𝘳𝘥 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘢𝘨𝘦𝘯𝘤𝘪𝘦𝘴 𝘢𝘯𝘥 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭𝘴 𝘢𝘳𝘦 𝘭𝘪𝘬𝘦𝘭𝘺 𝘵𝘰 𝘸𝘦𝘭𝘤𝘰𝘮𝘦. 𝗔 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗶𝗻𝗴 𝗶𝗻𝗵𝗲𝗿𝗶𝘁𝗮𝗻𝗰𝗲 Back in June this year, just before the general election, a succinct article in FDI Intelligence set out some of the challenges awaiting the incoming government. Following years of uncertainty and economic shocks, the UK was underperforming in investment attraction, including job-creating greenfield FDI. The broader picture was one of low GDP growth, productivity growth and business confidence. 𝗦𝘂𝗺𝗺𝗶𝘁𝘀 𝗮𝗻𝗱 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 The new government has made it absolutely clear that it intends to turn the situation around. On October 14th, at the International Investment Summit, plans to create a ‘pro-business environment’ were presented to an invited audience of global business leaders. On October 17th, the government published its green paper (for consultation) - Invest 2035: the UK's modern industrial strategy, focused on tackling barriers to investment and leveraging the UK’s areas of strategic advantage. 𝗖𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝗮 ‘𝗳𝗶𝗿𝗺 𝗳𝗼𝘂𝗻𝗱𝗮𝘁𝗶𝗼𝗻 𝗳𝗼𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁’ After years of uncertainty and challenging conditions, the approaches set out in Invest 2035 are likely to be welcomed by organisations and professionals working to attract investment. Reassuring themes include... 𝗖𝗹𝗶𝗰𝗸 𝗼𝗻 𝘁𝗵𝗲 𝗹𝗶𝗻𝗸 𝘁𝗼 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲 𝗿𝗲𝗮𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗮𝗿𝘁𝗶𝗰𝗹𝗲 𝗮𝘁 𝗖𝗹𝗮𝗿𝗶𝘁𝘆'𝘀 𝗜𝗻𝘄𝗮𝗿𝗱 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝗯𝗹𝗼𝗴. #InwardInvestment #FDI #IndustrialStrategy #StrategicMarketing #LeadGeneration #EconomicDevelopment #PlaceMarketing

Katie Potts, Herald Investment Trust - Feb' '24 There is no doubt that the UK public market is in a more fragile state than during any previous downturn in living memory. The question is whether this is cyclical or whether the damage is more structural. The UK public market is currently a fairly difficult environment for entrepreneurs to raise capital and I am saddened by how much management teams have been diluted by fund raisings at distressed levels. I believe that value in our portfolio will be realised through takeovers but that the costs incurred by listed companies in the UK, with the recent added burden of ESG and auditing requirements, has become too high to attract new companies. Similarly, the costs for managing small investments have increased considerably, with additional ESG and regulatory costs. Unfortunately, active investment management does not scale, and it is conspicuous that larger players have withdrawn and funds have shrunk. There are now too few players in the UK to have an efficient market, and too few co-investors. It is a pity because public markets have provided long- term risk capital for the benefit of the wider economy, but the skillset is disappearing rapidly. It seems the UK will inevitably shrink as a percentage of the Company’s assets. 

💶Will President-Elect Von der Leyen's plan to "turbocharge investment" solve the #investmentcrisis? Key developments today in the EU as Commission President-Elect Ursula von der Leyen has unveiled ambitious measures to turbocharge investment across the European Union, making it a top priority in her newly published political guidelines 🌍💶 In light of this, our latest report offers crucial insights into the current state of EU investment. It highlights an alarming #investmentcrisis looming on the horizon and reveals a substantial funding gap that cannot be bridged by capital markets #CMU alone. Europe’s survival depends on its capacity to invest massively in green and digital transitions and in its strategic autonomy. Avoiding these investments could lead to severe social and economic disruptions in the future. However, the current EU public finance architecture, constrained by political deadlocks and short-termism, obstructs necessary investments. While a better integration of financial markets, as pursued through the Savings and Investments Union (#SIU), would help, our report shows it won't suffice. The Commission needs to carefully evaluate this investment crisis. Such an assessment could pave the way for pragmatic discussions on reshaping the EU’s financing architecture 📊🔍 📖 Dive into our report and join the conversation: https://lnkd.in/e8Tyg5GG

#impactinvesting / How Policy and Regulation Can Unlock Billions for Impact - Impact Finance Belgium "To truly unlock the capital needed for such investments, there is an urgent need for cohesive policy and regulatory reforms that facilitate sustainable investments, bolster investor confidence, and encourage crossborder collaboration. Further developing the enabling environment for impactful financial instruments, such as green bonds and investment funds, will be critical in attracting a new wave of retail and institutional investors eager to make a positive impact, including in new areas beyond decarbonisation, such as boosting biodiversity and adaptation to climate change" https://lnkd.in/dksc94eU

Principles for Responsible Investment Reveals 2030 EU Policy Roadmap to Catalyze Private Investment in Europe’s Economic Transition Elise Attal #sustainableinvesting #energytransition #sustainablegrowth #eugreendeal #ESG #ESGNews

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A clear and credible industrial strategy from the UK Government will be welcomed by business. It will play an important role in providing the certainty needed to drive investment. It's vital that it also places decarbonisation at its heart. https://lnkd.in/eWqAX5ip Our latest report outlines why an industrial strategy that enables and accelerates emissions reductions is critical to future growth. Read more 👇 https://lnkd.in/eT8vr6AX

Policy Brief - What Investment Gap? Quality Instead of Quantity As a portion of GDP, investment is higher in the EU than in the US. This is true for aggregate investment, as well as for three of its four components a IEP@BU - Institute for European Policymaking at Bocconi University Policy Brief by Daniel Gros, Leo Mengel, and Giorgio Presidente Executive Summary A popular thesis in policy circles is that there is an “investment gap” that Europe needs to fill to face the great challenges of our times, such as the digital and green transitions. However, the notion of the “investment gap” used by policymakers is often vague and therefore it risks legitimate a wasteful allocation of public resources. This policy brief examines investment data from different sources at varying levels of aggregation and reaches three main conclusions. First, as a portion of GDP, investment is higher in the EU than in the US. This is true for aggregate investment, as well as for three of its four components: dwellings, buildings & structures, and industrial machinery. The only category where the EU lags behind the US is in intangibles, mostly R&D and software development. Second, this holds as well when focusing on investment levels in the business sector. Firms headquartered in the EU and in the US spend about the same on tangible capital. However, EU firms spend only 1/3 as much on R&D relative to firms in the US. Third, the “R&D gap” is due to the high-tech industry in the EU being small compared to the US. The EU corporate sector specializes in mid-tech industries, such as automotive, with a lower propensity to invest in R&D. Public guarantee programs like the 2014 Juncker Plan, or more recently InvestEU, finance mostly large tangible investments of the sort Europe already does abundantly. Instead, more support for intangible investment is what Europe needs to compete strategically with other geopolitical blocks. If the objective of EU policymakers is technological leadership in digital and clean technology, then it should find ways to boost private R&D spending, which is much lower in the EU than in the US. This cannot simply be done by spending more on publicly-funded R&D, which is similar on both sides of the Atlantic. What the EU needs is structural change, i.e. the development of high-tech industries. To do so, policymakers should create incentives for companies to invest in high-risk, high-reward projects outside of their current areas of specialization. There are a number of concrete, well-known areas for improvement in fiscal, corporate, labor law, and the education system. The creation of a capital markets union and structural reform would be much more effective in boosting innovation and long-run growth in the EU than spending on infrastructure. Università Bocconi SDA Bocconi Toulouse School of Economics CESifo Clemens Fuest Jean Tirole Carlo Altomonte Catherine E. de Vries