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Volume 616: debated on Tuesday 8 November 2016

3. What steps his Department is taking to promote innovation (a) in the regions and (b) nationally. (907115)

Innovation is at the heart of our industrial strategy. Investment in science, funding through Innovate UK, and research and development tax credits all contribute to our goal of making sure the UK remains one of the most innovative countries in the world.

I thank my hon. Friend for that answer. The latest figures from the Patent Office show that my constituency has more patents awarded than any other district in the east midlands, more than Manchester, more than Cheshire East, and is in the top 8% in the country. May I ask that the measures we take, some of which he outlined, do not stop at urban boundaries and extend into rural areas, fully using the talents of people and businesses there, including the incredible level of talent that has been demonstrated in High Peak?

I congratulate, through my hon. Friend, the innovators in his constituency on an outstanding achievement. Let me reassure him that the Government are determined to make sure, both through the industrial strategy and tools such as the innovations audits, that we are better informed and better equipped to support innovation across the country.

The steel industry is very much an industry of the future, and innovation is part of creating that future. What are the Government doing to support research and development in the steel industry, and a metals and materials catapult?

I thank the hon. Gentleman for that. We had an excellent debate last week about the future for steel, and I hope I made clear to him the determination of Ministers to support the sector in moving from a story of survival to one of growth. Innovation will clearly be a very important part of that, building on the quality of British steel. As in that debate, I assure him that in the capabilities review that we are funding and accelerating, that issue will be addressed.

I know that the Minister has previously flown over The Wrekin in a Squirrel—that is a helicopter—and has complimented Shropshire. May I invite him back to the Marches local enterprise partnership, which covers Shropshire and Herefordshire? What part will LEPs play in making sure that we engage and trade with Europe?

I thank my hon. Friend for reminding me about a helicopter trip that had slipped my memory. I am sure relevant Ministers would be happy to make the visit at his invitation. He raises a fundamental point, and on the development of the industrial strategy, the Secretary of State could not have been clearer about the importance placed on LEPs and of Ministers engaging with them to understand fully the priorities and needs in each area of the country.

The Secretary of State said on “The Andrew Marr Show” that innovation in attracting foreign investment was in part about skills and training. Will there be a level playing field across the regions and the nations of the United Kingdom? Is his Department having talks with the devolved Administrations?

I assure the hon. Gentleman that in developing the industrial strategy, the development of skills and upgrading our skills base across the country must be fundamental to success, and we will of course maintain a high level of engagement with devolved Administrations.

In North Cornwall, we have a company called Water Powered Technologies that builds hydroelectric pumps, which enable businesses to generate electricity through renewable means and, of course, support the local economy in Bude. Does my hon. Friend agree that the hydroelectric sector should be encouraged more and that we should go further and develop these technologies to help consumers?

I certainly agree with my hon. Friend that huge potential remains for the UK to generate energy from our natural resources and our water assets. The real test in the future will be how competitive those technologies are against comparable technologies. I am sure that my hon. Friend does not need any lessons from us on the need to be very cost-conscious at this moment in time.

Brexit Britain faces a choice: an industrial strategy that invests in innovation to deliver smart, sustainable and shared growth; or the slashing of wages, rights and corporate responsibilities in a race to the bottom. Sunday’s report from Sheffield Hallam University, “Jobs, Welfare and Austerity”, put the price of the last Tory Government’s disastrous de-industrialisation strategy at £20 billion a year today. Will the Minister stop prevaricating and set out how he will invest in skills, research capacity and infrastructure to stimulate innovation in our great industrial regions?

The hon. Lady has a distinguished record and knowledge of innovation, but I do not recognise the picture she paints. She totally ignores the job creation under the previous Government and that manufacturing productivity has grown three times faster over the past 10 years than the rest of the UK economy. She is right—I have already stated the importance of this—about placing innovation at the heart of our industrial strategy, because it is key to productivity.