Vision for Economic Growth — a roadmap to prosperity 27 3. Become a digital-first economy A key factor underpinning the UK’s innovation The ability to access and use data across borders is key ecosystem — across all sectors of the economy — to 昀椀rms’ growth and the UK’s economic activity. Cross- will be data. In the near term, it will be particularly border data transfers contribute as much as US$2.8tn to important to consider applications related to AI global GDP, and information transmission is increasing 77 Domestically, the UK’s own framework (such as data privacy); sustainable 昀椀nance (such as Impact by 2030 every decade. has made signi昀椀cant progress (see Figure 9), and other There is an increase in inclusive growth and prosperity for citizens and a rise in UK firms’ provision of decision-useful information to inform jurisdictions such as Australia and the Netherlands international competitiveness. Consumers can access a huge range of products safely and capital allocation choices); and interoperability of 78 There is switly. UK-based firms are able to innovate more eectively. standards and requirements to support secure data have replicated its regulatory coordination. an excellent opportunity to build on this momentum. sharing. Fortunately, the UK is already building a strong foundation for a strategic approach to data, Regulators should take existing collaborations, such as Context both domestically and internationally. It has a unique the DRCF, to the next level, as explored in the big move The UK has a thriving tech sector. The tech sector now also at the forefront of discussions around key emerging opportunity to get the balance right between protecting in this chapter. Cross-border data 昀氀ows are also a critical 74 as well as adds £150bn pa to the economy, and its contribution has technologies such as AI and tokenisation, part of the big move on creating innovative networks privacy and avoiding protectionism. Data transcends 71 There are how government can use technology and data most grown by over 25% between 2010 and 2019. borders, so interoperability of the UK’s approaches will around the world (see Big move #9). 75 just under 5 million people working in UK tech startups impactfully to build a better UK. The success of these be key. The costs of getting this wrong are signi昀椀cant. sectors points to the UK’s thriving innovation ecosystem, and scaleups, an increase from just under 3 million in 2019, and more than double the 2.18 million working in and the strengths it can lean on when meeting the 72 The 昀椀ntech sector, to name the tech economy in 2011. evolving needs of customers in the future. This includes Figure 9: Highlights of select progress on key data-related initiatives just one example, received US$12.5bn in VC investment in Gen Z, who already have US$7tn or more in purchasing 2018 February 2023 March 2023 June 2023 2022. This puts the UK in second place globally in terms of 76 in昀氀uence globally. Creation of the Centre for Data, Establishment of Publication of the government’s Secured US/UK in- 73 Ethics and Innovation (CDEI) to the Department for AI White Paper and support for a principle agreement to UK industry is 昀椀ntech investment, behind only the US. enable the trustworthy use of Science, Innovation & pro-innovation and responsible establish a data bridge data and AI Technology (DSIT) approach to AI July 2020 December 2022 March 2023 Creation of the DRCF to Contribution to Data Protection and Digital support cooperation and the Organisation for Information (DPDI) Bill to coordination between Economic Cooperation streamline data protection member regulators on and Development (OECD) requirements and set the digital regulatory matters Principles for Government legislative basis for the UK's Access to Data Digital Identity and Attributes Trust Framework Technology can contribute strongly to inclusive, could enhance e昀漀ciencies and productivity, deliver cost economic growth. Closing gaps in digitalisation savings, improve customer experience, and integrate that prevent new technologies from being adopted data-driven decision making processes. But it is not just across the economy is therefore important. In 2021, digitalisation of businesses that must be considered. a government-commissioned study identi昀椀ed that, for It is also the digital inclusion of individuals in their roles the UK’s nations and regions as a whole, strengthening as both employees and citizens. One study found that regional digital ecosystems across the UK could grow £1 invested in digital skills training would generate 81 Improving the digital skills of the digital sector’s Gross Value Added (GVA) by at least over £9 for the economy. digitally excluded people can have profound impact on £41.5bn by 2025 (above 2019 levels), creating a further 79 Continued reliance on legacy technology 678,000 jobs. 昀椀nancial outcomes and social mobility. A key focus for is a risk for UK SMEs, which the OECD estimates lag the UK Government and industry must therefore be to 80 behind other G7 nations in their adoption of innovations. deliver truly foundational reforms that will support 昀椀rms Increasing the rate of digitalisation among UK SMEs and individuals to operate and innovate more e昀昀ectively. London skyline