Limited diffusion of productivity enhancing technologies is one of the primary causes of the UK’s sluggish productivity growth. Investment in R&D significantly boosts productivity. However, the administration of the 72 UK’s generous R&D tax credit system is limiting uptake amongst SMEs. The Government is right to recognise that the system requires reform, but larger-scale changes are needed to truly increase small business R&D investment. This should be combined with a clear strategy for encouraging firms to take up technology, led by local realities and designed around specific business need. (Conclusion, Paragraph 90)