Innovation in the Industrial Strategy Sectors 

This report provides benchmark data on levels of innovative activity in six of the eight Industrial Strategy Sectors. Based on a bespoke survey of around 1,000 firms conducted in mid-2026, the report focuses on levels of innovative activity, the innovation barriers firms face in each sector, and levels of collaboration for innovation.

The results suggest the very different nature of innovation in each of the IS sectors, the diverse barriers which firms face, and the variety in collaboration patterns. Innovators in Creative Industries and Digital and Technologies face significant financial barriers to innovation. Regulation is the dominant challenge in Life Sciences. External market conditions are seen as critical in Advanced Manufacturing, Digital and Technologies and Life Sciences. Skills shortages are prominent in Advanced Manufacturing and PBS but much less evident in Life Sciences. Policy implications are considered.

Download the the full report using the links on the right-hand side.

Please also read our related reports:

• Innovation in Micro-Businesses: Evidence from the Innovation State of the Nation 2023
• Insight from the State of the Nation Survey 2023 and 2024
• The Innovation State of the Nation 2025 Survey Report
• Assessing the technicians skills gap and recruitment barriers: Insights from the Innovation State of the Nation Survey
• Innovation State of the Nation Survey Report 2026