The Tories have listened to James Dyson's advice – now they must act on it
In 2010, it's increasingly difficult for many UK manufacturers to compete effectively with their Asian rivals. Wages – and therefore costs – in China, India, and South East Asia are almost always lower. But eight years after Dyson moved its manufacturing base to Malaysia, the company still employs 1200 staff in the UK. So what is it doing right?
Well, as David Cameron and Ken Clarke found out when they visited Dyson HQ on Monday, Sir James Dyson has amassed an impressive army of engineers and scientists. They're highly trained, academically qualified – and, one presumes, well paid to boot.
Cameron's visit coincided with the publication of James Dyson's long-awaited report, Ingenious Britain. And, having been commissioned by the Conservatives, the Tory leader has indicated that he would implement many of its findings in government. But Dyson is no easy taskmaster: he has argued that Britain must become the "leading hi-tech exporter in Europe".
To do this, he said, we first need to change how design and technology is taught in this country. The report suggests that a Conservative government should utilise "the expertise and goodwill of independent schools" to lift the standards of the state sector, with teachers from private schools sharing their skills with comprehensives. Jobs teaching science should also be made more attractive for the top science and engineering graduates – who should be paid more – and the actual curriculum must be sorted out. "Kids get turned off by dumbed down teaching, but rise to the challenge of mastering something difficult and satisfying," he wrote.
More controversially, Dyson proposed that a Tory government should spare and even extend Research and Development tax credits for small and high-tech firms. The CBI has criticised this idea, as the Telegraph reported yesterday:
Dr Tim Bradshaw, head of enterprise and innovation at the CBI, said: "R&D tax credits should not be restricted to SMEs and hi-tech firms, but should be available to companies of all sizes and sectors. This would encourage all businesses to grow through investment and innovation.
"Similarly, the Enterprise Investment Scheme (EIS) should concentrate on businesses with high growth potential, rather than Dyson's proposal that it focus on hi-tech firms alone."
It strikes me that as an inventor Dr Bradshaw would hardly flourish, such is his aversion to taking risks. And let's face it: to prioritise hi-tech businesses over others is risky. But given the state of British manufacturing, it also seems to be the right course of action. Dyson is a model of success now, but it could so easily have failed. Sir James Dyson went through over 5,000 prototypes to build his bagless vacuum cleaner, and fought expensive legal battles to protect his invention from rivals, almost bankrupting himself in the process on more than one occasion.
If the next government can support businesses like Sir James Dyson's – and properly educate young people to eventually work for pioneers like him – then it must. There's only one obstacle: it would take a radical Prime Minister to back this change. Enter David Cameron.
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