They imply changes across many aspects of the system, so a mechanism for equitable and aligned apportionment of incentives, costs, benefits and risks is required to overcome potential hurdles to innovation.

Innovation is needed across the whole spectrum of the railway business (and not just in relation to technology) to support the delivery of its objectives. The nature of the innovation will depend on the particular business needs – there is no single approach or standard application. But there are some common factors, as discussed below, which may serve to guide the development of innovative solutions. Businesses models used by the industry when establishing new ventures, or restructuring, should take account of these to ‘design in’ the capability to innovate.

Structured discussions we have held with senior industry representatives indicate that introducing innovative products and services into the railway is a real challenge. Four kinds of innovation are needed – technical, structural, process and cultural. Technical, to allow the application of the latest knowledge, materials and techniques; structural, to ensure incentives are aligned and technical innovation is welcomed; process, to make it easier to implement change in practice; and cultural, to create a can-do and want-to-do approach typical of best practice innovation industries.

The vision

A vision of the railway of the future would include a description of its ability to innovate: ‘By 2030 the sector is widely recognised as one of the most dynamic of the transport sub-sectors, with a thriving mix of organisations working together both within the GB and in international markets, and attracting the best talent’.

Amplifying this vision:

• Commercially attractive: Venture funding is available for the many attractive opportunities, while long-term investors are able to derive stable and attractive returns from a robust infrastructure sector. The industry is a magnet for talent and resources 
• Technologically dynamic: The industry is recognised as forward-looking, with a flourishing research base and a cross-section of companies committed to innovation, able to adopt new technologies and philosophies and bring them to commercialisation quickly and effectively. There is collaborative management of intellectual property, standards and systems. Innovation is facilitated by technology 
• Innovation-driven results: By 2030 the industry has made great strides in meeting the 4C challenges with innovation as a key driver and enabler for achieving results
• International reputation: Companies active in the GB industry supply chain are internationally competitive and have an enviable reputation for innovation

Progress and initial insights