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British government to investigate barriers to innovation

The Government has announced that it will be investigating employment rules that are stifling entrepreneurs and preventing them from being innovative.

The investigation, which was announced by Business Secretary Sajid Javid, will involve questioning businesses on topics such as what difficulties they face when trying to fund innovation.


Businesses will also be asked for their views on non-complete clauses, which are written into employment contracts. These clauses can prevent individuals from launching a start-up and working for a competitor for up to nine months after they have left a company.

Entrepreneurs will be able to say whether they believe such clauses are hindering British start-ups and acting as a barrier to innovation and growth.

The results of the consultation, which will be open until 22nd May, will be included in the Government’s Innovation Plan. It will focus on improving and driving innovation and encouraging new technologies to provide opportunities for British businesses.

Remove barriers

Commenting on the investigation, Javid stated that Britain is home to “some of the most innovative companies in Europe”, and that it is “already ahead of the curve” when it comes to new ideas.

“But I am clear that I want to see more enterprising start-ups and greater productivity in a free and fair marketplace, by making sure we take action to break down any barriers that are curbing innovation and entrepreneurship,” he added.

According Enterprise Nation founder Emma Jones, over half a million UK start-ups are created every year, which emphasises the need to remove the barriers that are preventing individuals from being innovative.

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