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his paper evaluates how regulation can actively accelerate innovation, using Ofwat’s Innovation Fund as a real-world case study. We review what the fund is delivering, which technologies are emerging, and what barriers still slow adoption, translating lessons into practical insights for regulators, utilities, and innovators.
Since 2020, Ofwat’s Innovation Fund has allocated over £140m across 74 projects aimed at boosting innovation capacity in the UK water sector. The paper highlights representative projects (circular-economy bio-polymers, fibre-enabled leak detection, and AI for water quality), then assesses effectiveness through uptake, collaboration, and knowledge-sharing indicators. It also outlines constraints—procurement rules, adoption culture, and scaling finance, alongside the fund’s planned expansion (toward £400m for 2025–2030) and the expected customer cost impact.
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