7. What assessment has the First Minister made of the ‘Innovation Wales’ strategy? OAQ(5)0660(FM)

It was published in 2013, after wide public consultation. It made Wales an early adopter of the EU’s smart specialisation approach to innovation, and is regularly referenced by the independent Innovation Advisory Council for Wales.

Thank you, First Minister. The market disruption that’s accompanying what’s widely called the fourth industrial revolution does give us an opportunity to reimagine the Welsh economy and make it more resilient to the challenges being unleashed by global forces. The current Innovation Wales strategy does need updating and it does need greater ambition in the face of this. Would the First Minister agree to a radical review of where future opportunities lie, looking particularly at emerging markets and not just existing ones, and looking beyond infrastructure investment and concentrating on more intangible ways of boosting growth in this vital area?

Regular reviews are important, because we know that technology changes so quickly that things can move on at a rapid rate. We talk about innovation 4.0—that would have been unknown in 2012, for example, so he is right that there need to be reviews. He is right that we need to look at new ways of creating jobs. I have to say that the infrastructure is important, although we must define infrastructure in the broadest way possible, and that means, for example, including, as I always have done, broadband in infrastructure—that’s a way of ensuring that jobs can remain, for example, in rural communities, where otherwise they would have disappeared. Certainly, as a Government, we are committed to regularly reviewing Innovation Wales in order to make sure that the plan is as up to date as it can be.

Would the First Minister reconsider how the Innovation Wales strategy supports a digital cluster in south-east Wales, and, in particular, review what more could be done to support cross-border research and development, given the increasing importance of the Bristol economy in digital technology?

Well, clusters tend to emerge in those areas where there are already skills to support them and also where there are already businesses that exist in that area. That doesn’t mean, of course, they can’t be created elsewhere, but they are more difficult to create in areas where those skills are not as available. Nevertheless, we’d want to ensure that the clusters that are created are sustainable—that they are specialised—and, of course, we’d promote cross-border working. Indeed, we’d promote working across Europe and across the world, because in that way, of course, we can tap in to the best research and also the best advice as we look to develop the Welsh economy.

Two reports have been in Ministers’ hands for almost a year now, from Professor Kevin Morgan and others suggesting the creation of a national innovation body for Wales, similar to what the Scandinavian nations have. I understand that the suggestion being made now is that innovation should be given as a responsibility to the new tertiary education body. The risk with that is that the higher education dimension gets its proper place, but at the expense of the kind of broader economic issues that Lee Waters referred to.

We have to ensure that there is balance. We know that skills in the higher education sector are extremely important, particularly with, for example, Wylfa Newydd. Further education is also important in order for people to have the skills—practical skills—in order for them to secure jobs. We do understand that that balance is important, and, of course, this will be part of the way in which we consider this ultimately.