In a new report, the Confederation of British Industry (CBI) has urged UK businesses to adopt ‘tried and tested’ technologies in order to help reduce inequality between productivity and pay.
The CBI argued that the adoption of technologies by UK firms could add more than £100 billion to the UK economy, and could potentially support a 5% reduction in income inequality.
The business group suggested that firms who fail to implement existing technologies and management practices ‘struggle to embed new skills’, and find it more difficult to export and allocate finance towards innovation.
In the report, the CBI called for the government to promote the adoption of proven technologies, such as cloud technology, mobile technology and cyber security, in its new Industrial Strategy. Funds should also be set aside to help support businesses in the UK to make use of these ‘readily available’ technologies.
Commenting on the matter, Carolyn Fairbairn, Director General of the CBI, said: ‘While the eyes of the business world can often be on ‘the next big thing’ in cutting-edge technology, too many firms are missing out on what’s right under their nose. Failing to adopt the nuts and bolts technologies of today is leaving a yawning gap in productivity and pay between businesses.
‘The UK needs more ‘magpie’ firms with the skill and the will to find and adopt tried and tested technologies and management practices that the best businesses showcase, and not get stuck in their ways.’