Low investment in IT could damage the economy

Category: Data recovery

20 July, 2012

A lack of investment into IT infrastructure to improve processes and ensure continuity during data recovery could make the recession last longer.

Nesta's latest Innovation Index revealed that the UK has experienced a decade of lost advancement as businesses prioritised capital and property investments, over new IT or innovation.

In the first quarter of 2012, investment in IT fell by 10 per cent, from £3.91bn to £3.52bn, but investment into technology must increase if the economy is to grow and remain internationally competitive.

After rising steadily from 1990 to 2000, innovation stagnated from 2000-2008 at 12 per cent of private sector output.

"Everyone agrees that innovation is the only route to long term growth. The concern is that today's report and Investment Index show that investment in the future didn't just fall during the immediate aftermath of the financial crisis, but also continued falling as the economy appeared to stabilise," said Geoff Mulgan, Nesta's chief executive officer.

Virtualisation and cloud computing are important changes to IT infrastructure to improve businesses flexibility as well as improving data recovery.

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Posted by Edward Clark

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