THE SHARE of UK businesses classed as “innovation-active” has fallen sharply over the past decade, raising concerns about the ability of firms in Wales and across the UK to compete, grow and adapt.

New figures show that only 34% of UK businesses were innovation-active between 2022 and 2024, compared with 53% ten years earlier — a fall of 19 percentage points.

The National Centre for Universities and Business (NCUB) said the decline should worry policymakers, universities and employers, particularly at a time when productivity, investment and economic growth remain under pressure.

For Wales, the figures are especially relevant. Many Welsh businesses are small or medium-sized firms operating in rural, coastal or post-industrial communities, where access to finance, skills, research partnerships and new technology can be more limited than in larger urban centres.

The warning comes despite repeated political promises to make the UK a science and technology leader. NCUB says the problem is not a lack of research talent, but a failure to turn ideas into commercial activity across the wider economy.

Rosalind Gill, Director of Policy at NCUB, said: “A shrinking base of innovative businesses is a serious concern. Innovation is not confined to a handful of frontier sectors or high-growth companies. It depends on businesses across the economy investing, adapting and bringing new ideas, products and services to market.

“The UK has many strengths. We continue to produce world-class research, generate promising discoveries and collaborate effectively across institutions. Innovation is not created by research alone, however.

“It depends on businesses investing in R&D and innovation, shaping demand, adopting new technologies and working with the research base to solve real-world challenges.”

Ms Gill said the Government’s focus on growth, innovation, reforms to UK Research and Innovation, and a new Industrial Strategy were welcome, but businesses needed clearer long-term priorities and simpler routes from research to market.

She added: “When we speak to business leaders, they consistently highlight the importance of clearer long-term priorities, stronger pathways from research to market, reduced complexity across the research and innovation system, and greater confidence that the UK is a place where innovative firms can start, scale and succeed.”

The NCUB said the challenge now is to ensure that research strengths translate into business investment, commercial activity and economic impact.

For Wales, that means ensuring universities, colleges, manufacturers, farming businesses, tourism operators, renewable energy firms and digital start-ups are not left behind as the UK attempts to rebuild its innovation economy.

A NEW digital programme is helping Welsh town centres improve their online visibility and compete for customers in an increasingly digital marketplace.

SMART Busnes, delivered by Newcastle Emlyn-based Antur Cymru, has created Digital Place Plans for six towns it supports in Ceredigion, including Lampeter.

The plans provide each town with a detailed assessment of how it performs online, looking at promotion, coordination, marketing, social media presence, search data, footfall analytics and wider digital behaviour.

The programme has been described as a “health check for the high street”, identifying where towns may be losing customers and what practical steps can be taken to improve.

Bronwen Raine, Managing Director of Antur Cymru, said the plans were designed to turn strategy into practical action.

She said: “Digital Place Plans help bridge the gap between strategy and delivery.

“By taking a whole-place view, they support towns to make better use of existing assets, work more collaboratively, and build the confidence needed to make informed, long-term decisions that benefit local communities.”

Whole-town approach

Rather than focusing only on individual shops, each Digital Place Plan looks at the town as a whole.

The plans consider how visitors find and move through a place, whether local organisations are working together effectively, and where digital infrastructure or promotion could be strengthened.

The aim is to show how small, coordinated improvements can create a bigger long-term impact than any one business could achieve alone.

The latest plan focuses on Lampeter and was developed by Digital Place Lead Clive Davies before being presented to Caru Llambed, the town’s regeneration partnership.

Elen Page, of Caru Llambed, said the session had already inspired action, including work on a funding bid for a new skatepark.

She said: “Thank you Clive. Have just drafted the Expression of Interest for our skatepark — so inspired. Data next thing!”

Kevin Harrington, Programme Manager for SMART Busnes, said the plans helped communities understand both their strengths and areas for improvement.

He said: “By creating a shared evidence base, they show what is already in place, where the gaps are, and how digital can support local priorities in a practical and realistic way.”

Support for rural businesses

The Digital Place Plans form part of the wider SMART Busnes Shared Prosperity Fund programme and sit alongside other digital support being rolled out across Ceredigion.

Last December, the programme became one of the first in Wales to launch a practical toolkit for Answer Engine Optimisation, helping small businesses improve how they appear in AI-generated answers on platforms such as ChatGPT and Google’s AI search.

Organisers say the approach could help rural Welsh SMEs compete more effectively, giving micro-businesses in towns such as Lampeter access to digital strategies more often used by larger brands.

SMART Busnes is delivered by Antur Cymru Enterprises with support from the UK Shared Prosperity Fund and Transition Fund through Ceredigion County Council.

Caption:

Digital boost: Cllr Clive Davies with Gabrielle Davies and Elen Page of Caru Llambed, and Kevin Harrington, Programme Manager for SMART Busnes.

ST DAVIDS’ Twr y Felin Hotel has celebrated ten years since opening its doors with a summer garden party for loyal guests, artists, partners, local supporters and friends of the hotel.

The event was held on Sunday, May 31, in the hotel’s landscaped grounds. Although Twr y Felin’s official opening took place in March 2017, the team marked the milestone with a relaxed outdoor celebration as summer arrived in St Davids.

Guests were welcomed with champagne before enjoying live music, drinks and afternoon tea-inspired canapés prepared by the award-winning Blas Restaurant team. The menu featured sweet and savoury bites made using seasonal, locally sourced ingredients.

Local musician Rosey Cale provided live music during the afternoon, while guests enjoyed the hotel’s gardens and sculpture collection.

A highlight of the event was a speech from owner Keith Griffiths, who reflected on the hotel’s journey over the past decade and thanked staff, guests and the local community for their continued support.

Originally built in 1806 as a windmill, Twr y Felin has undergone many transformations throughout its history before reopening as Wales’ first contemporary art hotel.

Today, the hotel is home to more than 250 artworks, the 3 AA Rosette Blas Restaurant, Awen Spa, and 39 individually designed bedrooms, welcoming visitors from across the UK and beyond.

Keith Griffiths, Retreats Group founder and owner, said: “I am so pleased that Twr y Felin Hotel has grown from strength to strength over these ten years due to the incredibly hard work of our staff, loyalty of our guests and support of our community.

“I look forward to the continued success of Twr y Felin Hotel and its sister properties, Roch Castle, Penrhiw Priory and St Bride’s Spa Hotel, as we continue to develop the luxury hotel market of St Davids and Pembrokeshire.”

The anniversary garden party marked not only a celebration of the hotel’s achievements to date, but also an opportunity to look ahead to the future as Twr y Felin continues to evolve while remaining rooted in its heritage, art, hospitality and connection to Pembrokeshire.

Twr y Felin Hotel is a luxury contemporary art hotel in St Davids, set within a restored windmill. The hotel is known for its design-led interiors, curated artwork and coastal setting.

Guests can also dine at Blas Restaurant, which offers modern Welsh cuisine using seasonal local produce, and relax at Awen Spa, a private couples’ spa designed as a tranquil retreat.