Reconsidering the UK's Competitive Edge
Dmytro Shestakov
CEO, Co-founder @ RICH | London Business School | Product & Business Architect
In 1703, the Methuen Treaty between England and Portugal paved the way for the UK to access the New World's resources, including the lucrative slave trade and Brazilian gold. This significantly contributed to the UK's prosperity and global influence, which many still benefit from today in terms of high living standards and stability. However, the world has since shifted to a knowledge-driven economy, and the UK must adapt.
Unfortunately, the UK is being held back by its notorious bureaucracy, which is driving companies like Revolut to seek new jurisdictions. Additionally, the struggling NHS, an anti-customer orientation, high taxation, expensive living conditions, and a problematic education system make it challenging for the UK to attract and retain talent.
As a result of these factors, the UK is struggling to keep up in the global competition for top talent, even among those born and raised in the country. The traditional financial stronghold of the UK now works against it in the era of innovation and technology-driven growth, requiring a shift towards an entrepreneurial mindset rather than a conventional banking approach.
Despite having an abundance of investment capital, the UK is losing the battle for promising startups to countries like the US, China, India, and others. Lessons from the past half-century, such as DARPA, Silicon Valley, and the rise of tech industries in Israel, Singapore, and Poland, have not been heeded.
The prestigious reputation of UK academia is no longer enough to keep it competitive in the global market. Adopting an entrepreneurial and innovation-driven culture is now imperative to secure the UK's future success.
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So, what should the UK's unique value proposition be in today's world? Political stability and geographic advantage alone won't be enough to counter the technological revolution of the past 60 years. The UK must reflect on its strengths and take proactive steps to remain competitive in this ever-evolving global landscape.
Originally published on my Blog
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1 年Excellent questions. The UK has a lot of innovative companies struggling against strong headwinds. This weeks press releases from the EU commission look promising. I suspect the EU will gently nudge the UK into a more positive direction. But because of electoral math there's a dynamic where the two main parties A) won't talk about this and B) will privately welcome the EU's leadership.