The government has published a new report called Innovation in Services to help encourage UK businesses to innovate.

The report said the government will work with the Technology Strategy Board and the British Standards Institute to take forward the report’s recommendations.

“Innovation is critical to the UK’s future prosperity, our quality of life and future job prospects,” said innovation minister Ian Pearson in a statement.

The report is based on industry-led reviews of sectors including: internet services, environmental service sectors, retail, construction and logistics.

One of the main findings was the amount the internet has transformed the power of consumers. “Innovative businesses have responded by adapting their business models to meet customer expectations,” the report noted.

The government said in its response that an independent review will look into barriers of next-generation broadband networks in the UK. The review will support Ofcom’s latest research and will be led by former Cable and Wireless chief executive and current vice chairman at Lehman Brothers, Francesco Caio.

The report also found a lack of international agreed standards is holding back innovation. The government said it will work with the British Standards Institute to develop a more strategic approach to standards, particularly in areas such as logistics and carbon footprint.