Innovation has always been one of the UK's strengths and is a vital factor in ensuring our return to economic prosperity. It is instrumental in improving productivity, creating new goods and services, and expanding markets. This fourth Annual Innovation Report provides the latest available evidence on our innovation performance and the contribution of business, government, higher education and research organisations to innovation activities in the UK. It reveals a promising picture. The UK has one of the leading research bases, outstanding R&D capability, high levels of overseas investment and considerable international collaboration. According to the World Economic Forum, the UK ranks second in the world for university-industry collaboration, behind Switzerland but ahead of the US. In March 2012, the Government launched the new UK Research Partnership Investment Fund to incentivise and support large joint research ventures between universities, businesses and charities. We have now invested £300 million in this Fund, and with leveraged co-investment from the private and charitable sectors this will total over £1 billion for university research infrastructure and strategic research partnerships.
