Uncovering Hidden Innovators

Official measures of innovation used by statistical authorities are constrained by stringent definitional requirements and therefore fail to capture the full breadth of innovative activity. Incorporating broader data sources and more inclusive definitions of innovation alongside official measures can provide a more comprehensive understanding of private-sector innovation, supporting more effective, evidence-informed policymaking.

This project addresses these limitations by developing the most extensive data-linking exercise to date, bringing together ten firm-level longitudinal datasets covering a wide range of UK firms’ research, development, and innovation (RDI) activities between 2015 and 2022. These data include statistical surveys, multiple administrative sources from public bodies, and an alternative data source derived from machine-learning analysis of company website text. This integrated approach enables the identification of “hidden innovators”, firms not recognised as innovative under traditional definitions, and supports the analysis of innovative activity across the entire business population. This brief outlines the data and methodology used, demonstrates the scale and significance of hidden innovators, and examines their patterns and characteristics. In addition, the integrated database, aggregated by region (ITL2) and industry (SIC 20 macro-sectors) for the period 2015–2022, is made available to users and researchers.

Download the Policy Brief and associated data via the button on the right