Britain urged to power on to lead in creative industries
BRITAIN needs to act fast if it is not to become an economic backwater, one of the UK's leading experts on the world economy has warned.
David WilliamsonPolitical Editor
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John Kestenbaum, the chief executive of the National Endowment for Science, Technology and the Arts (Nesta), visited Wales yesterday with a stern message.
Warning that graduates in India and China would not be content to work in call centres and assembly plants, he said the idea that they will not try to compete at the highest end of the market is misguided.
"Take note of the fact that last year China and India produced between them a quarter of a million computer science graduates, in comparison with the UK's 5,000," he said.
However, he added, "We have an advantage of being slightly ahead of the game."
Mr Kestenbaum is in Wales to launch initiatives designed to give graduates in the creative industries the business acumen and seed funding to develop products with the potential of global sales.
The Apple iPod is held up as an example of the type of product which brings together cutting- edge technology and exciting design. Mr Kestenbaum, who took on the role with Nesta three weeks ago, will use his position to encourage unprecedented integration of engineering, design and entrepreneurship.
He said, "The iPod is extraordinary technology which has emerged out of great science, and, equally, you can't possibly imagine the commercialisation of the iPod without the extraordinary design of John Ive.
Mr Ive was born and educated in Britain.
A Nesta grant was integral in setting-up Starbridge, the Swansea firm developing an insulin-delivery system for diabetes patients which removes the need for a catheter and instead uses a tiny, laser-driven pump.
"Starbridge is an investment of which we are very proud," Mr Kestenbaum said.
"We believe it's a case study of how Nesta's very-early-stage risk- financing can facilitate companies that have very ambitious global growth strategies."
Britain's creative industries are responsible for 8% of the UK GDP.
In encouraging further the development of businesses which place creativity at the heart of the development, marketing and manufacturing and processes, Mr Kestenbaum said Wales had much to teach the rest of the country.
He said, "One of the reasons I'm in Cardiff is Nesta is very much looking to expand its activities in Wales.
"We are very interested in co-operating with the innovation agenda in Wales.
"We have seen how Wales has had quite a bit of impact with early-stage incentivisation.
"We want to take many of the things Wales has pioneered and roll them out across the country."
All of this is focused on making the UK a more competitive player in the world economy.
He said, "You can't manufacture cheaper than China and you can't sell services cheaper than India. The only benchmark you can set is a global benchmark.
"Among the Nesta initiatives is an academy featuring residential training for graduates in January and February; at the end of this they can apply for risk funding of up to £35,000.
"It will be followed by a nine-month mentoring process."
Nesta was founded by the Government in 1998 and has since made more than 700 investments, together worth more than £70m.
Mr Kestenbaum has a background in commodity trading and has an MA in education.
This is not his first role outside business, having served as chief executive of the office of the Chief Rabbi, Professor Sir Jonathan Sacks.