Innovation confidence vs reality: RS research reveals deep disconnect between confidence, technology and approach in the energy and utilities sector
Posted by: electime 10th October 2025
New research reveals an innovation disconnect between perceived innovation and the realities of technological and cultural readiness within the UK energy and utilities sector. The findings coming from RS found while 88 per cent of senior energy and utilities leaders view levels of innovation as high in their organisation – more than three quarters (78 per cent) still feel they are held back by legacy technology.
These technological and cultural barriers are undermining competitiveness of the energy and utilities sector. Although 95 per cent agree innovation is critical to maintain competitive advantage, one in 10 respondents describe their innovation efforts as minimal or reactive (higher than any other sector surveyed). As 86 per cent struggle to align innovation efforts to day-to-day operational demands, there is clearly more work to be done in adopting a strategic always on approach to innovation.
Drivers for innovation among leaders reflect this disconnect with top reasons for pursuing innovation focused on short term gains instead of longer-term benefits. 43 per cent view growth and profitability as the main driver of innovation, significantly higher than other industries, like manufacturing (32 per cent) and construction (27 per cent).
Laying the right tech foundations will be critical to pivoting from opportunistic to strategic innovation. It is encouraging to see strong investment intent to close the gap, with leaders prioritising investing in automation and robotics at a higher rate than any other industry (41 per cent). Other investment priorities include Industrial IT (47 per cent), and data management (36 per cent).
Mike Bray, VP of Innovation at RS, says: “There is a clear disconnect between how Energy and Utilities leaders regard innovation, and how it is rolled out in practice. Innovation isn’t only about driving the bottom line.
It’s a long-term strategic commitment that requires deep rooted cultural change and solid technology foundations to support. To make big impact and maintain competitiveness, it needs to align to what the business will need five years from now, not just address immediate concerns.”
The full report can be downloaded via the RS website – Staying competitive: Innovation in UK industry
