The number of innovative firms in Wales has fallen sharply

The real test of whether an economy is becoming more productive is not found in political speeches but in the behaviour of businesses. Are they investing in new products? Are they new products, adopting technologies and finding new ways to compete?

That is why the latest UK Innovation Survey matters so much, as it tells us something important and uncomfortable namely, that Wales is not only below the UK average in innovation activity but has fallen further behind over the last three survey periods.

In 2018-20, 43.5% of Welsh businesses were classified as innovation-active, compared with a UK average of 44.9%. By 2022-24, that had changed dramatically and whilst the proportion of innovation-active businesses had fallen to 34% in the UK, in Wales, it had crashed to just 27.7%.

For an economy that has long struggled with productivity, that should be a serious concern because innovation is one of the routes through which businesses become more productive. It is not just about laboratories, patents or university spinouts, although those have their place.

It is also about new ways of working, better technology, improved systems, stronger management, new services and more efficient processes. If fewer Welsh firms are doing these things, then closing the productivity gap becomes even more difficult.

The comparison with the rest of the UK is also uncomfortable and in the latest survey period, England had an innovation-active rate of 34.8%. Northern Ireland was at 30.3%. Scotland was at 29.4%. Wales was last, at 27.7%.

Nor is Wales simply behind London and South East England; it is below every English region and therefore the worst-performing part of the UK. That should challenge any explanation normally out forward by those in power that Wales is only being held back by the exceptional strength of the south-east of England, and the latest figures suggest something broader and more worrying.

The survey also shows that several core innovation activities have weakened across the UK, and the proportion of businesses investing in computer software, computer hardware and internal research and development as part of innovation activity fell from 2018-20 to 2022-24.

These are not marginal business activities as software, hardware and R&D are among the practical foundations of modern productivity, and they are the ways firms improve what they do and how they do it. If these activities are weakening nationally, and Welsh firms are less likely to be innovation active in the first place, the challenge for Wales becomes even greater.

The survey also reminds us that larger firms are more likely to innovate. In 2022-24, some 47% of large UK businesses were innovation active, compared with 34% of SMEs. That matters because Wales has a business base heavily shaped by small and medium-sized enterprises and fewer large private-sector headquarters than stronger-performing regions.

This is not a criticism of Welsh SMEs, as many are ambitious, creative and resilient, but smaller firms often have less time, less capital, fewer specialist staff and less management capacity to invest in innovation. The owner-manager, dealing with cash flow, recruitment, customers, regulation and day-to-day delivery, may recognise that technology adoption or process improvement is necessary but still struggles to make it happen.

The barriers identified in the survey underline this point and among broader innovators, 21.6% identified the cost of finance as a barrier, 20.3% cited the availability of finance, and 19.6% said the direct cost of innovation was too high.

So the issue is not simply whether firms have ideas, it is whether they have the money to act on them and, as I have pointed out so many times, questions need to be asked as to why the Welsh Government own funding body, the Development Bank of Wales, has not specifically addressed this critical issue.

The technology findings are equally important as broader innovators are far more likely than non-broader innovators to use artificial intelligence, CRM (customer relationship management) systems, ERP (enterprise resource planning) software, project management tools and other management technologies.

This matters because productivity – which is now the touchstone for this new Plaid Cymru Government – is often lost not in dramatic failures, but in ordinary inefficiencies, including poor customer management, slow invoicing, poor workflow and inconsistent project delivery.

This means that for many Welsh firms, the biggest productivity gains may come not from a breakthrough invention but from better use of everyday technology. And yet such changes have not been the focus of the activities of Business Wales which is allegedly there to support Welsh businesses.

The export data tells a similar story and in 2024, 28.3% of broader innovators exported, compared with only 9.2% of non-broader innovators. Among SMEs, 27.6% of broader innovators exported, compared with 8.9 per cent of non-broader innovators. Innovation and exporting are therefore closely connected and firms that innovate are more likely to sell beyond their immediate markets, and firms that export are often pushed to become more competitive.

For Wales, this is crucial as a small economy cannot build prosperity by selling mainly to itself and needs more firms competing in wider markets but that requires stronger products, better systems, improved quality, sharper branding, more efficient processes and greater confidence.

Therefore, latest UK Innovation Survey should be seen as more than a statistical report, but as a warning that Wales has a productivity problem, and it is getting worse

Six years ago, Wales was close to the UK average, but it is now clearly behind and has not only fallen faster than the UK, but it is behind every UK nation and every English region. It has fewer innovation-active firms at a time when technology adoption, new products, better processes and stronger exports should be at the heart of economic renewal.

There is no easy route from a low-innovation economy to a high-productivity one, but if Wales wants higher wages, stronger firms and a more resilient economy, these findings cannot be ignored. Innovation cannot remain a specialist policy interest or a slogan attached to political manifestos, but must become central to how Wales thinks about business growth, productivity and the future of the economy

This article was written by

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More than 17,000 coffee makers were recalled over a burn hazard that can cause serious injury, according to federal regulators.

About 17,600 Kidisle-branded hot and iced coffee machines were affected by the recall, according to the U.S. Consumer Product Safety Commission.

“The recalled coffeemakers(sic) can become clogged, causing hot liquid or steam to build up and be released unexpectedly during use, posing a risk of serious injury from burn hazard,” the commission said on Thursday.

FORD ISSUES RECALL FOR MORE THAN 548,000 VEHICLES OVER ISSUE WITH CENTER CONSOLE

At least 107 reports have been made regarding the coffee makers releasing hot liquid or steam unexpectedly, causing at least 27 reported injuries, including first and second-degree burns that required medical treatment.

The item is designed in black, white and gray colors, measures about 11 inches high and 6 inches wide and has a 50-ounce detachable water tank. It can brew six to 14 ounces of cupped or ground coffee.

The coffee makers were sold online at Amazon, Walmart and eBay from June 2024 through April of this year for about $49.

The machines affected by the recall have model “KC101B” printed on a sticker on the underside while the brand name is listed on the product order receipt.

KIA RECALLS 6K VEHICLES DUE TO POSSIBLE SEAT BELT DEFECT THAT COULD RAISE INJURY RISK

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Consumers are urged to stop using the coffee makers immediately and contact Kidisle for a full refund.

Shares of Motilal Oswal Financial Services surged over 5% in Friday’s trade, rising to Rs 873 on the NSE after global brokerage UBS initiated coverage on the stock with a ‘Buy’ rating. The brokerage assigned a sum-of-the-parts (SOTP)-based target price of Rs 1,150, implying an upside potential of nearly 32% from the current market price.

According to UBS, Motilal Oswal is well-positioned to benefit from India’s ongoing financialisation trend, thanks to its diversified presence across wealth management, asset management, and capital markets. The brokerage highlighted the company’s increasing exposure to fast-growing assets-under-management (AUM) pools, particularly in wealth and asset management businesses.

UBS expects the Indian mutual fund industry to deliver an 18% CAGR in AUM by FY30, while high-net-worth individual (HNI) wealth and alternative assets could grow at more than 20% CAGR, creating a strong growth runway for the company.

Shift to AUM-Led model seen as key growth driver

The brokerage noted that Motilal Oswal is transitioning from a transaction-driven business model to an AUM-led, annuity-style platform, where earnings are increasingly linked to client assets rather than market trading volumes.

UBS expects Motilal Oswal to deliver strong growth over the next few years, forecasting its assets under management (AUM) to expand at a compound annual growth rate (CAGR) of 21% between FY26 and FY29. The brokerage also projects revenue to grow at a 19% CAGR during the period, while earnings are expected to outpace revenue growth with a 22% CAGR, supported by the company’s increasing focus on recurring, asset-based income streams.

The brokerage believes the market is yet to fully appreciate this transformation toward higher-quality, recurring fee income streams, which could reduce earnings volatility associated with the broking business.

Attractive Valuation Despite Strong Growth Outlook

UBS values Motilal Oswal using an SOTP methodology and assigns a valuation equivalent to 19x FY27 estimated earnings. The brokerage argues that historical valuation multiples may no longer be the best benchmark given the company’s evolving business mix and rising contribution from fee-based income.

Also read: 4 key factors powering today’s market rally
The valuation incorporates premium multiples for asset-light businesses such as asset management and wealth management, while assigning relatively conservative multiples to the capital markets segment.With robust industry tailwinds, accelerating AUM growth, and a business model shift toward recurring revenues, UBS sees Motilal Oswal emerging as a key beneficiary of India’s long-term wealth creation and financialisation story.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Top finance voices gathered at Bloomberg to discuss key issues, including China’s regulatory crackdown and associated risks. They explored the implications for global markets, investment strategies, and the economic outlook, highlighting challenges and opportunities amidst regulatory changes and geopolitical uncertainties impacting the financial landscape.

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Bloomberg Invest Hong Kong showcased the city’s vibrant financial ecosystem, attracting global investors and industry leaders. The event highlighted Hong Kong’s strategic position as a gateway between China and the world, emphasizing its robust capital markets and innovative financial services. Keynote speakers discussed the city’s resilience amid economic uncertainties and its role as a hub for fintech and sustainable investing.

Participants explored opportunities in emerging sectors such as green finance, technology, and digital assets. The conference emphasized Hong Kong’s commitment to fostering innovation through government initiatives and collaborations with international firms. Networking sessions facilitated connections between local startups, multinational corporations, and institutional investors.

Overall, Bloomberg Invest Hong Kong reinforced the city’s status as a premier financial center. With a focus on sustainability, technology, and international partnerships, the event underscored Hong Kong’s potential to continue leading in global finance and investment opportunities.

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The four companies that spun out from Vedanta’s mega demerger are set to list on stock exchanges on Monday (June 15). For investors who have missed out on the mega restructuring, analysts commented on which stock may provide better returns once they debut on stock markets.

The Anil Agarwal-led conglomerate in April had announced that each of its eligible shareholders will get one share of Vedanta Aluminium Metal (VAML), one share of Talwandi Sabo Power (now renamed to Vedanta Power), one share of Malco Energy (now renamed to Vedanta Oil and Gas) and one share of Vedanta Iron and Steel, for every share held in Vedanta, marking one of the biggest corporate restructuring in India’s metals and mining space.

Vedanta had set May 1 as the record date for the much-awaited demerger. While the eligible shareholders can continue trading Vedanta stock, the value attributable to these new entities is currently in price-discovery limbo—from the record date until their listings—since investors cannot trade them yet, even as Vedanta’s share price has already adjusted lower post-demerger.

According to exchange notices, Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium Metal and Vedanta Iron & Steel make their much-awaited market debut on Monday and will be initially placed in the Trade-to-Trade (T2T) segment, where every transaction results in compulsory delivery.

While eligible investors will be awarded with the shares of the four new companies automatically once they list, analysts suggested what investors, who missed the record date and are planning to buy some of the new stocks once they list, should do.

Also read: At what price will each of the four new Vedanta companies list? Check cost of acquisition

Which stock should you buy?

Sunny Agrawal, Head of Fundamental Research at SBI Securities, said an investor can look to buy the shares of Vedanta Aluminium Metal on the back of robust capacity expansion of aluminium and strong LME Aluminium prices.
He said that the fair value of Vedanta Aluminium Metal stands at Rs 489 apiece, while that of Vedanta Power stands at Rs 44 per share. Vedanta Oil & Gas commands a fair value of Rs 42 per share, while the same of Vedanta Iron & Steel stands at Rs 19 per share, according to the analyst.“Notably, among the demerged businesses, Vedanta Aluminium stands out as the most attractive entity, with an expected listing valuation of Rs 400+ per share. This is supported by its strong contribution to group revenues and margins, along with favourable industry dynamics such as tight global supply, elevated aluminium prices, and ongoing capacity expansions driving volume growth,” said ICICI Direct in a report.

Also read: How will Vedanta demerger impact dividend payouts for shareholders?

Nuvama in its report had said that Vedanta and Vedanta Aluminium will likely remain large-cap, while those of Vedanta Power, Vedanta Oil & Gas and Vedanta Steel & Iron ore will list at small-cap stocks. It had highlighted that mutual fund flows will likely be skewed towards the two large caps, while the small cap demerger entities will see limited participation.

ICRA recently removed the long-term rating of Vedanta Aluminium Limited (VAML) from watch with developing implications, following greater clarity on the allocation of assets and liabilities under the ongoing demerger scheme of Vedanta Limited as well as the support framework across group entities. ICRA has also upgraded the rating and assigned a Stable outlook to the long-term rating.

“The rating action factors in ICRA’s expectation that VAML’s financial profile will strengthen further in FY2027, following the strong improvement seen in FY2026 owing to a sharp increase in aluminium prices globally. On the London Metal Exchange (LME), aluminum prices remained firm during FY2026 with an average of $2,771/tonne, around 10% higher compared to the previous fiscal. The prices have continued to be elevated in the current fiscal so far and are expected to remain firm in the near term, given the global supply-side constraints and the ongoing geopolitical situation. The elevated prices are expected to support VAML’s credit profile,” the ratings agency further said, while highlighting steady cost structure, solid sales expectations and strong business profile.

Vedanta Aluminium currently has an installed capacity of around 2.4 million tonnes per annum and is targeting 3 million tonnes per annum by FY28, with an additional 3 MTPA greenfield expansion under evaluation. The company operates the world’s largest single-location aluminium smelter and exports products to nearly 70 countries.

For Vedanta Power, Emkay estimates a share price of around Rs 51.7 per share. Kotak Institutional Equities see the stock at Rs 60 per share, while Nuvama’s valuation implies a value of around Rs 47 per share. CLSA’s estimate corresponds to roughly Rs 35 per share.

Also read: Analysts expect 7-8% returns for retail investors from Wipro’s Rs 15,000 crore buyback. Here’s how

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

SYDNEY — Australia has announced its 26-man squad for the 2026 FIFA World Cup, blending established veterans with exciting young talents under coach Tony Popovic as the Socceroos prepare for a challenging Group D that includes co-host United States, Turkiye and Paraguay.

The squad features a mix of European-based players and A-League stars, with key figures like Mathew Ryan, Jackson Irvine, Harry Souttar and rising prospects Nestory Irankunda and Mohamed Toure expected to play central roles. Popovic’s selection reflects a balance between experience and dynamism as Australia aims to advance beyond the group stage for the first time since 2006.

Full Squad Breakdown

Goalkeepers Mathew Ryan (Levante, LaLiga, 34, 104 caps) – The captain and most experienced player heads into his record-equalling fourth World Cup. Paul Izzo (Randers, Danish Superliga, 31, 4 caps) Patrick Beach (Melbourne City, A-League, 22, 2 caps)

Defenders Aziz Behich (Melbourne City, A-League, 35, 84 caps) Jordan Bos (Feyenoord, Eredivisie, 23, 27 caps) Cameron Burgess (Swansea City, Championship, 30, 27 caps) Alessandro Circati (Parma, Serie A, 22, 13 caps) Milos Degenek (APOEL, Cypriot First Division, 32, 57 caps) Jason Geria (Albirex Niigata, J.League 2, 33, 14 caps) Lucas Herrington (Colorado Rapids, MLS, 18, 4 caps) Jacob Italiano (Grazer AK, Austrian Bundesliga, 24, 5 caps) Harry Souttar (Leicester City, Championship, 27, 38 caps) Kai Trewin (New York City FC, MLS, 25, 6 caps)

Midfielders Cammy Devlin (Hearts, Scottish Premiership, 28, 5 caps) Ajdin Hrustic (Heracles Almelo, Eredivisie, 29, 37 caps) Jackson Irvine (St Pauli, Bundesliga, 33, 82 caps) Connor Metcalfe (St Pauli, Bundesliga, 26, 36 caps) Paul Okon-Engstler (Sydney FC, A-League, 21, 6 caps) Aiden O’Neill (New York City FC, MLS, 27, 31 caps)

Forwards Nestory Irankunda (Watford, Championship, 20, 15 caps) Mathew Leckie (Melbourne City, A-League, 35, 80 caps) Awer Mabil (Castellon, LaLiga 2, 30, 38 caps) Mohamed Toure (Norwich City, Championship, 22, 10 caps) Nishan Velupillay (Melbourne Victory, A-League, 25, 7 caps) Cristian Volpato (Sassuolo, Serie A, 22, 1 cap) Tete Yengi (Machida Zelvia, J.League, 25, 1 cap)

Key Players and Strengths

Mathew Ryan’s leadership and experience between the posts provide stability. The 35-year-old arrives in strong form after helping Levante retain LaLiga status. Jackson Irvine, the St Pauli captain, remains a midfield anchor with 82 caps, offering leadership and energy.

Harry Souttar’s recovery from a long-term Achilles injury adds defensive solidity, while his aerial presence is a threat at set pieces. Young talents like Jordan Bos (Feyenoord) and Nestory Irankunda (Watford) bring pace and creativity, with Irankunda seen as a potential x-factor due to his explosive speed and powerful shot.

Mohamed Toure’s emergence as a striker adds depth in attack, while established names like Mathew Leckie and Awer Mabil provide experience on the flanks. The squad’s blend of youth and veterans gives Popovic flexibility in tactical setups.

Group D Challenges

Australia faces a demanding Group D against co-host United States, Turkiye and Paraguay. The Socceroos open against Turkiye on June 13 in Vancouver, followed by matches against the United States in Seattle on June 19 and Paraguay in Santa Clara on June 25.

Progression to the round of 32 is a realistic target in the expanded 48-team format. A strong performance against Turkiye would set an ideal tone, while avoiding defeat against the United States could position Australia well heading into the final group match.

Coach Tony Popovic’s Approach

Popovic has emphasized tactical discipline, high pressing and exploiting transitions. His selection reflects a desire for balance, with experienced players providing leadership and younger talents injecting dynamism. The coach has stressed the importance of mental preparation and adapting to North American conditions.

Australia’s recent form in qualifiers and friendlies has shown improvement, with the team demonstrating greater cohesion and attacking threat. Popovic’s experience in European and Asian football brings valuable tactical knowledge to the Socceroos setup.

Historical Context and Ambitions

Australia has appeared in seven World Cups, with round of 16 finishes in 2006 and 2022 marking their best performances. The 2026 tournament offers an opportunity to surpass those results in an expanded format that rewards consistency across three group matches.

The Socceroos qualified convincingly through Asian qualifiers, demonstrating growth since their playoff heroics in previous cycles. Reaching the knockout stages again would be a significant achievement and boost domestic football development.

Fan Expectations and Support

Australian fans are expected to travel in strong numbers to Vancouver, Seattle and Santa Clara, creating pockets of green and gold support. The Socceroos’ passionate supporter base has grown with each tournament appearance, and national pride will be high as the team seeks to make history.

Broadcast coverage on SBS will ensure widespread accessibility, with convenient viewing times for the opener against Turkiye. Fans are encouraged to follow official channels for updates and ticket information for matches.

Preparation and Key Storylines

The squad is based in Oakland for final preparations, focusing on fitness, tactical cohesion and adapting to time zones. Injury management and squad rotation will be vital given the tight schedule.

Key storylines include Irankunda’s potential breakout, Souttar’s recovery and Ryan’s leadership in his fourth World Cup. The team’s ability to perform away from home against strong opposition will be tested early.

Outlook for the Tournament

Australia enters with realistic ambitions of advancing from Group D. A positive result against Turkiye would set an ideal tone, while strong performances against the United States and Paraguay could secure progression.

The expanded format provides more opportunities, but the quality in Group D demands consistency. With a balanced squad and experienced coach, the Socceroos are well-equipped to compete and potentially create more World Cup memories for Australian fans.

As the tournament begins, national attention turns to the Socceroos’ campaign. The blend of youth and experience under Popovic offers hope for a strong showing in what promises to be a memorable 2026 World Cup.

The Socceroos’ journey starts against Turkiye on June 13. With solid preparation and a clear tactical plan, Australia has every chance to make an impact in Group D and beyond. Fans worldwide will be watching as the green and gold takes the field once more on football’s biggest stage.

SpaceX will become a publicly traded company on Friday, in what is expected to be the highest-value stock listing in history.

The BBC’s Samira Hussain explains what it means for SpaceX’s future and for the company’s CEO, Elon Musk, who is set to become the world’s first trillionaire.

The shares of MTAR Tech rallied around 12% on Friday after the company clarified that it has not received any communication on any project delay, following reports around an abrupt pause in its key US-based client Bloom Energy’s data centre project that sparked a 15% crash in the stock over two days.

The shares of the company rose to Rs 7,093 apiece on Friday morning, further buoyed by overall market optimism. The stock has jumped over 190% in 2026 so far and a whopping 315% in one year.

MTAR Tech shares crashed around 15% over the past two sessions after a Bloomberg report stated that Crusoe Energy Systems LLC, which develops data centres for companies such as OpenAI and Microsoft, has paused work on a planned 1.8-gigawatt data centre campus in Cheyenne, Wyoming. The project was expected to be powered by 900 MW of Bloom Energy fuel cells along with grid electricity.

Notably, MTAR Tech is a critical manufacturing partner for Bloom Energy. It manufactures and fabricates critical assemblies for the US-based company. MTAR Tech’s website states that Bloom Energy’s servers are among the most efficient energy generators globally, significantly reducing electricity costs and lowering greenhouse gas emissions.

For over nine years, MTAR has supplied power units, specifically hot boxes, to Bloom Energy in the US, and a major portion of its revenue comes from the US-based client. Currently, MTAR is also developing and manufacturing hydrogen boxes and electrolysers for the company.

Why are MTAR Tech shares rising today?

However, today’s sharp surge in MTAR Tech share price comes along with a similar gain in Bloom Energy’s share price on Wall Street. Further, MTAR Tech clarified that it has received no communication on any project pause during an investor call, ET Now reported.

The company further said that it is working with multiple vendors, and not just Bloom. Its order book, meanwhile, has doubled over the past one to two months. MTAR Tech management does not expect any material impact even if a project is paused, which remains unconfirmed, ET Now reported.

MTAR Tech bulk deals

MTAR Tech also saw several bulk deals being executed on June 11 after the sharp crash in the share price. Hrti Private Limited sold around 2.5 lakh shares at Rs 6,564 apiece, and bought around 2.71 lakh shares at a lower price of Rs 6,501 apiece, according to NSE data.
Jump Trading Financial India sold 1.56 lakh shares at Rs 6,551.22 apiece, and then bought the same number of shares at Rs 6,497.21 apiece.Junomoneta Finsol, meanwhile, sold 2.14 lakh shares at Rs 6,530 apiece, and bought 2.15 lakh shares at Rs 6,526 apiece.

MTAR Tech share price

MTAR Tech shares have seen a significant surge recently, delivering strong returns to investors. The stock has jumped more than 260% in three years and around 580% in five years. The company currently has a market capitalisation of nearly Rs 21,495 crore.

Technical levels for MTAR Tech

MTAR Tech shares have undergone a healthy correction after hitting a high of 8,450 on May 22, eventually retracing towards their 50-day EMA, said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities. Encouragingly, the stock witnessed a strong rebound from this support level today, indicating that the near-term bullish trend remains intact, he added.

“On the weekly chart, momentum indicators such as RSI, ADX, and MACD remain elevated following the sharp rally, suggesting that intermittent profit booking cannot be ruled out. The 6,050–6,000 zone continues to act as a crucial support area. As long as the stock sustains above this range, the broader uptrend is likely to remain intact. However, a decisive breach below this zone could trigger extended profit booking,” the analyst further said.

Also read: Why is market rallying today?

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)