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Title page 1

Contents 6

Foreword 4

Acknowledgements 5

Executive Summary 8

1. Introduction 10

References 13

2. The state of SME technology adoption in the United Kingdom 14

Introduction 15

Recent trends in technology adoption across UK businesses 15

Technology adoption by firm size 17

Technology adoption across regions and sectors 19

References 20

Notes 21

3. Main findings from the consultation process 22

Introduction 23

Barriers to technology adoption 23

Technology diffusion channels 25

The regional dimension of technology adoption 27

Monitoring and evaluation issues 29

Technology adoption policies 30

References 36

Notes 38

4. Suggested policy measures for the United Kingdom 39

Introduction 40

Technology adoption 41

Skills development 54

Regional dimension 61

References 69

Notes 74

Annex A. List of organisations that participated in the fact-finding missions 76

Annex B. International Programme Case Studies 77

Tables 7

Table 2.1. SME digital adoption rates across UK regions, average 2018-22 20

Figures 7

Figure 2.1. Digital technologies adoption rates: UK, EU and OECD in 2019 and 2020 16

Figure 2.2. Digital technologies adoption rates, UK firms, 2024 17

Figure 2.3. SME digital technologies adoption rates in the United Kingdom, 2022 18

Figure 2.4. Percentage of businesses investing in computer software and hardware, and machinery and equipment, 2020-2022 19

Figure 3.1. Technology Readiness Levels 30

Boxes 7

Box 1.1. Key messages 10

Box 3.1. The UK Technology Adoption Review: Main barriers to technology adoption 23

Box 3.2. The MTC - Lloyd's Bank partnership: SME Support Service 26

Box 4.1. Suggested policy measures for the UK government 40

Box 4.2. General OECD policy recommendations for regional cluster development 62