As the Chair of The Data City, I am pleased to provide our response to the “Invest 2035: The UK’s Modern Industrial Strategy” consultation. The green paper focuses on investing in the emerging economy and transforming the UK’s economy as a whole. In short, we believe that there is a significant role for The Data City to play in supporting both emerging economy and traditional sectors.
We’re encouraged to see reference to the fact that strategy and support relies on an ability to accurately define a sector. The Data City has been tackling the issue of sector classification for the past 7 years and has created Real Time Industrial Classifications (RTICs) and, more recently, Real-time Standard Industrial Classifications (RSICs).
For the economy to be forward looking, our ability to classify the emerging economy needs to be real-time. To modernise traditional sectors, we need access to the most accurate data.
The current reliance on Standard Industrial Classification (SIC) codes, last updated in 2007, presents significant challenges. SIC codes cannot accurately capture the dynamic and rapidly evolving sectors of today’s economy. SIC codes will not help guide investment and policy to scale emerging sectors. Nor will SIC codes allow us to understand the true size of traditional sectors. RTICs and RSICs can help here.
RTICs are a new industrial classification. RTICs rely on AI and expert input and offer a solution to outdated sector classifications. RTICs enable policy makers to understand the emerging economy and we are proud to have already seen our data contribute to economic transformation. Our data has shaped many discussions around Net Zero, Quantum, Life Sciences, and the broader emerging economy.
For example, our partnership with the Energy and Climate Intelligence Unit (ECIU) and CBI Economics led to the development of the Mapping the net zero economy report which highlights the importance of having reliable data to guide investment and policy decisions for the net-zero transition.
A further example of this is our collaboration with the Department for Science, Innovation and Technology (DSIT), Government Office for Science (GOS) and Innovate UK Business Connect in mapping the Quantum Technologies sector. It has been an existing challenge due to lack of standardised definition of the quantum sector. With our AI driven approach, we have laid the foundation for further analysis and understanding of the sector’s potential, including its contributions to employment, revenue, and productivity.
More recently The Data City have improved the accuracy of analysis for traditional sectors through RSICs. Effective policy analysis requires accurate data. SIC codes are outdated, inaccurate and, in many cases, vague. RSICs use artificial intelligence to assign companies SIC codes that better suit their activities, allowing policy makers to better understand the size of a sector. The Data City are already working with industry to create the new Data Infrastructure required to underpin The UK’s Investment, Finance & Banking sectors.
Sectoral analysis and policy development should be grounded in comprehensive data
The green paper emphasises the need for a targeted approach to industrial strategy, focusing on high-growth sectors and addressing barriers to investment. Our RTICs can significantly enhance this process by providing detailed, real-time data on sectoral performance and trends. This allows for more accurate identification of growth-driving sectors and the development of tailored policies that address specific needs and opportunities within these sectors.
A prime example is the The UK Data Driven Market report by Department for Science, Innovation and Technology (DSIT), which was built on Data City’s comprehensive data. The report provides valuable insights into defining and understanding data-driven companies, offering a clearer framework for policymakers to better support these high-growth sectors.
Whilst writing this response, I was able to identify a list of innovative Net Zero companies in Leeds in minutes. There are 121 companies. They’re growing fast at 19.4% and they’ve raised 62 million pounds in investment. I can access detailed financial information for each of these companies and I can search across their websites.
In addition to comprehensive data, we believe the best way to capitalise on the nation’s investment in high growth sectors is through effective decision making. Two examples of how we believe effective decisions can be achieved are provided below.
- There should be real-time access and analysis of data: The Data City can eliminate the need for static, outdated reports and instead access live data streams. This allows for immediate analysis and decision-making, ensuring that actions are based on the most current information available.
- Accurate and efficient decisions will drive progress: Decisions that are based on accurate, up-to-date information, reduce the risk of errors and improve outcomes. Our platform reduces decision-making time from weeks to minutes, enabling policymakers and investors to respond rapidly to emerging trends and allocate resources more effectively
This agility is crucial in today’s fast-paced economic environment, where timely decisions can significantly impact growth and competitiveness. This data-driven policymaking would ensure that resources are allocated efficiently and that policies have the desired impact.
Understanding clusters and the strengths of an area are key for growth
The green paper’s focus on regional growth and the development of high-potential clusters aligns with our capabilities in mapping and analysing sectoral clusters. I have already mentioned how RTICs can be used for sectoral analysis, with the example of Net Zero companies in Leeds. This is accessible to every user of our platform.
Beyond this analysis, the Data City have expertise in the formal identification of industrial clusters. Our recent work on The Innovation Clusters Map , in collaboration with Department for Science, Innovation and Technology (DSIT) and Cambridge Econometrics has helped policy makers and investors understand regional strengths and opportunities.
The unique capability of The Data City
The Data City is uniquely positioned to deliver these capabilities today. The combination of our RTICs, RSICs, insight & analysis software and expertise are the only solution currently available that can provide actionable, high-quality insights in the time it takes to make a good cup of coffee. This is the antithesis of the long, backward looking, caveated, reports so beloved by commissioners and managers of projects and hated by anyone who actually has to use the data to build or do anything.
We look forward to the opportunity to collaborate further and contribute to the successful implementation of this ambitious strategy.
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