Reprise of 'Sgt Pepper economics' demanded

In a bid to boost innovation in British industry, the trade secretary is urging business to emulate the pioneering spirit of the Beatles.

Alan Johnson was on Thursday evening set to deliver a speech on science and globalisation at the Lord Mayor's banquet, where he will encourage what he calls "Sgt Pepper economics".

In the Mansion House speech he was seeking to recast his department as a champion of science, technology and productivity and urge businesses and universities to be more creative and open to globalisation.

The rock and roll fan will say the legendary Liverpool band benefited financially from taking huge musical risks in their Abbey Road studios in moving on to record albums such as Sgt Pepper's Lonely Hearts Club Band.

Johnson will argue that they embraced wide international influences and new technology.

"If the Beatles had carried on producing albums like Please Please Me, they'd have ended up with a dwindling catalogue, dwindling sales and a dwindling audience," he will say.

"But, by drawing from global influences on the one hand, like the sitar, Californian harmonies and gospel, and scientific advances on the other, they made every album sound fresh and new.

"We need to recreate the spirit of Abbey Road in British industry."

Drawing heavily on 1960s influences in his speech, the cabinet minister will claim that academics need to spin off more of their ideas into industry and encourage young entrepreneurs to think of globalisation as an opportunity rather than a political problem.

"In some of our universities, globalisation is a dirty word. We need to cleanse it," he will say.

"If we fail to make the case... there is a risk that globalisation could become to Generation X what Vietnam became to the baby-boom generation."

"Creativity is a way of thinking that industry must embrace," he will add. "You could call it Sgt Pepper economics."

Calling on Britain to become "the creative hub of the world", he will also say productivity must also improve in order to compete.

Johnson is expected to outline plans to focus the Department of Trade and Industry more on the goal ahead of next year's comprehensive government spending review.

Having reportedly held lengthy discussions with the chancellor on the subject, the minister is set to use the challenges of globalisation as the basis for future DTI financing.