The Learned Society of Wales presents
Inclusive Innovation for Wales
What is inclusive innovation?
What works in Wales
What works elsewhere
Obstacles
Introduction
Over the last five months, the Society has convened four roundtable discussions on innovation, gathering experts to inform and improve policies in Wales. These discussions extended the Society’s previous innovation roundtable series that contributed to developing the Innovation Strategy for Wales (enacted on February 2023).
The programme’s objective was to explore key issues with those operating in the Welsh innovation ecosystem and to learn from others beyond. Furthermore, the roundtables focused significantly on ‘Inclusive innovation’ or ensuring that innovation benefits all segments of society. Professor Rick Delbridge FLSW chaired the roundtables, conducted under Chatham House rules, with diverse core participants sharing UK-wide and regional insights. The comparative approach fostered knowledge exchange and trust, allowing reflection on Wales’ innovation landscape and future strategy needs.
The discussions considered the following themes:
Full reports from the discussions are available by clicking the titles.
An overview of summary points from the four previous roundtables provides further insight into these discussions:
- Wales can draw inspiration from the Basque innovation ecosystem, focusing on policy continuity, strong intergovernmental relationships, intermediary actors, and a culture of country-building to adapt and inform its innovation activities and structures.
- Learning from the Scottish innovation ecosystem, Wales can embrace more holistic approaches to economic development (in comparison to more traditional, growth-focused methods) while optimising funding mechanisms and leveraging place-based interventions.
- Regional collaboration should foster inclusive networks among universities, businesses, the public sector, and communities to enhance civic engagement and innovation in Wales. Adapting place-based approaches to local needs, investing in institutional capability, and celebrating achievements can inspire further progress and foster a culture of community involvement.
- Since June 2023, Welsh Government has supported 135 innovation projects, equating to over £50 million in grant funding, and fostered significant collaborations with Innovate UK, bringing £57 million into Welsh businesses. To further inclusivity efforts within the innovation ecosystem, there is a need for better data collection, ongoing improvements in strategic partnerships and communication, funding support for SMEs, and efforts by major organisations to focus on social and cultural factors.
In June 2024, the Society hosted an event featuring speakers from various Welsh institutions to discuss barriers and opportunities for Inclusive Innovation in Wales. This report synthesises the key findings and recommendations.
Inclusive Innovation:
An Introduction
Inclusive innovation represents a transformative approach in research, development, and entrepreneurship. Rooted in principles of diversity, equality, and inclusion, it aims to dismantle barriers preventing the participation of under-represented individuals, social groups, firms, sectors, and regions in innovation activities (OECD). This philosophy broadens the scope of who can contribute to and benefit from innovation and enriches the innovation process itself.
At its core, inclusive innovation also involves designing and developing solutions with a broad spectrum of users in mind. According to Innovate UK Business Connect, these innovations are crafted to serve the broadest possible range of users or to provide specific solutions for those typically excluded from mainstream innovation. This ensures that the benefits of technological advancements and entrepreneurial activities are equitably distributed.
Furthermore, inclusive innovation is driven by environmental and societal objectives, often addressing challenges unique to specific local contexts. Klingler-Vidra et al. (2022) highlight that this pursuit involves problem owners collaborating with multiple stakeholders to find solutions that are not only innovative but also socially responsible and contextually relevant. Thus, civic engagement is a critical aspect of inclusive innovation, which focuses on how research and innovation organisations can make a meaningful difference within their local communities. By engaging citizens and partnering with various civic entities, these organisations can maximise their positive influence as anchoring institutions within a specific place. This involves regional collaboration across sectors to build and invest in inclusive networks that transcend traditional boundaries. Place-based approaches tailored to the unique needs of an area and its communities are essential, as is investing in institutional capability to ensure that civic engagement is integrated across budgets and departments rather than relying on individuals or specific projects.
Civic engagement is a critical aspect of inclusive innovation, which focuses on how research and innovation organisations can make a meaningful difference within their local communities.
Inclusive innovation also requires rethinking what is considered successful innovation and how regional actors can drive innovation. There is a persistent misconception that big tech is the sole driver of growth, often overshadowing the importance of “mundane innovation” (Henderson et al. 2024). Mundane innovation involves enhancements in the essential services and infrastructures—such as healthcare, education, and transportation—that support daily life and community well-being; these are the mundane everyday goods and services of the foundational economy.
Furthermore, understanding the dynamics between the core economy (urban areas) and the periphery (remote, less economically strong areas) is crucial, particularly for a nation such as Wales. The core economy often drives the tradeable economy, characterised by sectors producing 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. In peripheral regions, which are often viewed as places where innovation stagnates, mundane innovation allows for the periphery’s distinct attributes to become assets, enabling innovation in ways that differ from urban areas (see Figure 1).
In conclusion, inclusive innovation redefines the innovation landscape by emphasising diversity, equity, and accessibility, ensuring that the benefits of technological and entrepreneurial advancements are broadly distributed. Inclusive innovation is founded on a capacious understanding of the different types of innovation and the forms of value that may be created from cultural, public, and social value through to commercial and economic outcomes. It involves designing solutions with a wide range of users in mind, addressing local and environmental challenges, and integrating civic engagement to make meaningful impacts within communities. This approach highlights the importance of mundane innovation—incremental improvements in essential services—especially in peripheral regions often seen as lacking innovative potential. By recognising the value of foundational economies in these areas and fostering inclusive networks, we can create a more equitable and effective innovation ecosystem that transcends traditional boundaries and supports diverse contributions to the benefit of all our citizens.
Welsh Innovation Strategy: An Implementation Status Update
Over the last year, Welsh Government has been working to implement its Innovation Strategy for Wales, following the guidance outlined in the policy and strategy document “Wales Innovates: Creating a Stronger, fairer, greener Wales.” The strategy is informed and guided by the Well-being of Future Generations (Wales) Act 2015, placing citizens and long-term thinking at its centre. Furthermore, the strategy’s implementation is guided by three critical points: collaboration, equality, and ecosystem mapping.
Collaboration is essential for making a real difference, requiring cooperative efforts from various stakeholders, including public institutions, private enterprises, and community groups. Specifically, the Welsh Government’s collaboration with Innovate UK has significantly increased the number of innovation funding applications from Wales. Equality is understood broadly, encompassing not just demographic equality but also regional equality, ensuring that all areas of Wales benefit from and contribute to the innovation landscape. Ecosystem mapping is essential for seeing the forest through the trees; thus, the Welsh Government has comprehensively mapped the Welsh innovation ecosystem. This mapping includes the public sector, education sector, research organisations, innovation assets, funding providers, the third sector, and industry.
One major challenge regarding the implementation thus far is how to engage citizens in the process meaningfully. It is difficult to maintain consistent engagement, as citizens tend to float in and out of the process. One suggestion was to develop comprehensive communication plans to gain a holistic picture of public sentiment and involvement. Furthermore, there was significant interest in raising the aspirations of children and young adults regarding innovation. For example, research conducted by UCAS suggests that children who decide to attend university by the age of ten or earlier are 2.6 times more likely to enrol in a more competitive university than those who choose in their late teens. This highlights the critical role of early encouragement and exposure in shaping long-term educational and career outcomes, emphasising the need for proactive initiatives to foster ambition and readiness for future challenges in innovation-driven fields.
The Welsh Government's focus on enhancing collaboration, equality, and ecosystem mapping in implementing the Innovation Strategy for Wales will be crucial for driving continuous improvement.
There is a pressing need to change attitudes toward risk in the public sector. Several roundtable participants noted that the fear of failure often leads to missed opportunities. This disconnect between legislative ambitions and outdated regulatory methods hampers innovation as new initiatives struggle to gain traction within regulatory frameworks that are resistant to change and overly cautious. Consequently, the potential for progressive policies and advancements is stifled by a system that prioritises risk aversion over creative solutions. Insights from Vietnam’s innovation culture, which encourages acceptance of failure and supports startups, were highlighted as a model to consider. Looking forward, the Welsh Government’s focus on enhancing collaboration, equality, and ecosystem mapping in implementing the Innovation Strategy for Wales will be crucial for driving continuous improvement. To advance, efforts must address citizen engagement, foster early ambition in youth, and adapt funding and regulatory approaches to create a more dynamic and inclusive innovation environment.
City Region Approaches to Inclusive Innovation
City regionalism refers to a governance approach that emphasises the importance of metropolitan regions as the focal points for economic development, planning, and policy implementation. Unlike traditional municipal governance, which tends to operate within the confines of city or town boundaries, city regionalism recognises that the economic, social, and environmental challenges of the 21st century transcend these borders. This approach advocates collaborative frameworks that bring together neighbouring cities, towns, and rural areas within a larger metropolitan region to address shared issues and leverage collective strengths.
City regions in the UK face unique challenges and opportunities in fostering inclusive innovation. Specifically, persistent inequalities, austerity measures, and the multilevel policy challenges associated with devolution are critical obstacles for such governance bodies. The UK’s second-tier cities are performing below the national average, which is unusual in the European context and highlights the need for tailored, place-based strategies to spur inclusive growth. At the event, participants considered the opportunities and challenges facing the Cardiff Capital Region – Wales’ largest economic region – and took the opportunity to compare and contrast these with Greater Manchester, a leading English city region which has been maturing its approach to innovation and regional economic development over the past decade and more.
Greater Manchester Region
Greater Manchester is a metropolitan county in Northwest England, encompassing ten local authorities: Manchester, Bolton, Bury, Oldham, Rochdale, Salford, Stockport, Tameside, Trafford, and Wigan. It covers an area of approximately 493 square miles (1,276 square kilometers) and has a diverse population of over 2.8 million people. The region is renowned for its economic diversity, with key industries including advanced manufacturing, digital and creative industries, financial services, healthcare, and life sciences. Manchester, the largest city, and economic centre of the region is home to major cultural institutions, universities, and international businesses. The Greater Manchester Combined Authority (GMCA) plays a pivotal role in coordinating regional policies and initiatives aimed at driving innovation, sustainable growth, and improving quality of life for its residents.
Cardiff Capital Region
The Cardiff Capital Region (CCR) is a city region in South Wales, comprising ten local authorities: Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen, and Vale of Glamorgan. It spans approximately 1,300 square miles (3,400 square kilometers) and is home to a diverse population exceeding 1.5 million people. The region is characterized by its economic strengths in sectors such as financial and professional services, advanced manufacturing, life sciences, ICT, and creative industries. Cardiff, the capital city of Wales, serves as the major economic and cultural hub within the region, and is home to several educational institutions. The Cardiff Capital Region City Deal, established to drive economic growth and infrastructure development, focuses on innovation, skills development, and sustainable transport initiatives. Collaboration among local authorities, businesses, and academia is key to advancing the region’s economic competitiveness and enhancing quality of life for its residents. Initiatives like the compound semiconductors cluster demonstrate how commercial success can be paired with societal benefits, including educational outreach and local job creation.
While economic performance may lag the UK national average, these regions also benefit from distinctive assets, such as strong academic institutions, vibrant cultural scenes, and dynamic local economies that can drive innovation. By leveraging these strengths and fostering collaboration between public, private, and academic sectors, these city regions can develop tailored strategies to promote inclusive growth. For example, new devolved powers offer an opportunity to create more localised, responsive policies that address specific regional needs.
Addressing persistent inequalities, particularly within Greater Manchester and the Cardiff Capital Region, requires a nuanced approach considering both urban and rural areas. Effective governance, coupled with targeted investment in skills, infrastructure, and technology, can help overcome barriers and ensure that the benefits of innovation are broadly shared. However, this also necessitates overcoming unhelpful conflicts, such as the towns versus cities debate, where investing in the richest parts of the region might yield immediate returns but can exacerbate inequalities if not managed inclusively. It’s also essential to foster joined-up thinking by connecting innovation policy with skills development, transport planning, and further education (FE). Wales has been seen as a leader in integrating FE into its innovation strategies under the recently established new institution Medr, the Commission for Tertiary Education and Research.
Moreover, inclusive innovation should be inherent to all innovation efforts, not treated as an additional theme. Industrial policy today is less about traditional factories and more about overcoming poverty and fostering a resilient, diversified economy. This includes public service innovation and supporting the everyday economy, recognising that big tech isn’t the sole driver of growth and won’t be present everywhere. As the four economic regions of Wales transition to their new institutional entities as corporate joint committees, it will be interesting to see how the devolution of certain statutory powers and greater scope for regional policymaking are shaped to meet the specific place-based needs and opportunities across the four corners of the nation. Participants at the event were positive in welcoming these developments and the scope that they offered for more ‘progressive regionalism’.
In conclusion, city regionalism provides a practical governance framework that addresses the interconnected economic, social, and environmental challenges of metropolitan areas. Focusing on broader regions rather than isolated municipalities, this pragmatic approach aims to foster sustainable growth and ensure broad-based benefits, contributing to more balanced regional development.
Responsible Research and Innovation
As the regional context for innovation has been changing, so have some of the expectations of universities in terms of their roles as regional actors and as contributors to innovation ecosystems. These developments have seen a greater acknowledgement of the relationship between research and innovation and of their wider societal significance.
Key bodies such as UK Research and Innovation (UKRI) have increasingly advocated ‘responsible research’, which emphasises the need for public engagement and the consideration of societal impacts throughout the research process. Stilgoe et al. (2013) state, “Responsible research and inclusive innovation are inherently interconnected, forming a synergistic approach that ensures scientific advancements and technological innovations are both ethically grounded and broadly beneficial.” This approach addresses the ethical dimensions of research. It aligns closely with the principles of inclusive innovation, which seeks to ensure that the benefits of innovation are widely shared and accessible to all segments of society.
The EPSRC’s AREA framework (see Figure 2) outlines the fundamental approaches used to consider responsible research and innovation.
EPSRC’s AREA framework for responsible research involves four stages: Anticipate, Reflect, Engage, and Act. In the Anticipate stage, researchers should describe the potential impacts of their research—economic, social, and environmental—while exploring unintended consequences and addressing areas of ignorance and ethical dilemmas. During the Reflect stage, they critically assess these potential impacts, challenging assumptions and recognising knowledge gaps. The Engage stage involves opening the research to dialogue with diverse stakeholders to explore motivations, impacts, and questions, ensuring inclusivity and good practice. Finally, in the Act stage, researchers implement changes based on stakeholder feedback, adapting their approach to enhance positive outcomes and contribute to societal well-being and sustainability. By applying the AREA framework, researchers can ensure their work is responsible and impactful across multiple dimensions, directly supporting the goals of Inclusive Innovation.
Responsible research is a safeguard, ensuring the innovation trajectory is carefully managed and aligned with public interests.
The concept of responsible research also connects to an innovation commons—a shared space where diverse actors collaborate, share knowledge, and co-create solutions. In these complex stakeholder networks, the needs and interests of different groups can sometimes conflict, making it challenging to ensure that everyone benefits. Researchers can better understand and address public concerns, expectations, and values by involving diverse stakeholder groups in the research process, from inception to implementation. This engagement is crucial when dealing with controversial interventions, where even the act of conducting research can appear to signal an intention to proceed with potentially divisive applications. Therefore, responsible research is a safeguard, ensuring the innovation trajectory is carefully managed and aligned with public interests.
Ultimately, responsible research and inclusive innovation create a framework in which ethical considerations and societal needs guide scientific and technological advancements. This integrated approach ensures that innovations push the boundaries of what is possible regarding value creation without making societal or ethical sacrifices.
Moving Forward with Innovation Policy: Successes, Challenges, and Future Directions
Wales has sought to establish a cohesive vision for innovation policy aimed at effectively aligning stakeholders and initiatives to foster innovation across sectors. These are important aspirations, but most evidence indicates they are challenging to deliver.
Government-backed entities like Catapults have been established to play pivotal roles but with mixed outcomes. In Wales, there are notable successes including CSConnected and MediaCymru, highlighting the benefits of targeted support in high-potential fields. However, challenges remain, including better promotion of success stories to inspire wider engagement and investment and adapting successful sector-specific models to other areas. Universities and other research organisations must enhance their support for innovation. This will require a better understanding of the progression from idea to adoption and how this can be supported, alongside improvements in data collection and equity integration throughout innovation cycles. When resources are limited, organisations often revert to business as usual, working reactively rather than proactively. This tendency is the antithesis of innovation; therefore, incentives to stimulate innovation are needed most during times of scarcity.
Addressing funding gaps in critical sectors is crucial, as resource constraints often hinder innovative practices. Future policy directions should emphasise skills development aligned with evolving innovation needs, coordinated risk management, and incentivising long-term investment in transformative projects. Institutional changes should focus on overcoming regional challenges through collaborative structures while drawing inspiration from successful international models tailored to Wales’ unique context. In conclusion, while Wales has laid some foundations for innovation, telling our innovation story more effectively, extending the beneficial impact of our sector-specific adaptations and learning from these, expanding data-sharing practices, inclusivity, and institutional support will all be essential in building a more resilient and inclusive innovation ecosystem into the future.
Report written by Samara Zuckerbrod.