SME Technology Adoption in the United Kingdom

Small and medium-sized enterprises (SMEs) play an important role in the economy of the United Kingdom (UK), but major gaps remain in technology adoption by local SMEs. While UK SMEs show comparatively high uptake of mature digital tools (e.g. cloud computing and data analytics), the deployment of advanced technologies (e.g., robotics and automation) remains more limited. Adoption also varies strongly across industries and regions, reflecting the economic geography of the UK. This report assesses issues and policies affecting SME technology adoption in the UK, drawing on desk research and two fact-finding missions in the three regions of Greater London, West Midlands and the North-East. The report finds that cost, perceived relevance and trust in technology vendors are key barriers to technology adoption by UK SMEs. On the other hand, peer learning, supply chain relationships, and intermediary organisations are among the most common technology diffusion channels. Building on this analysis and an assessment of current UK policies, the report proposes fifteen concrete measures that can further advance the SME technology adoption agenda of the UK government.