The digital transformation of UK manufacturing has emerged as a critical policy priority, yet Small and Medium Enterprises (SMEs) continue to struggle with adoption of Industrial Digital Technologies (IDTs). This paper draws on a meta-review of 47 research projects from the £4.4 million InterAct Network to develop a theoretical framework for understanding these persistent implementation challenges. We identify a temporal and spatial mismatch: while policy operates through abstract future scenarios, SMEs require concrete, immediate pathways for change. Our ‘stepping stones’ framework reveals four critical mechanisms that enable successful digital adoption: collective skills development, co-opetitive business models, trusted local intermediaries, and peer-to-peer learning networks. These mechanisms function within place-based ecosystems that bridge the gap between national policy ambitions and firm-level realities. The framework challenges conventional assumptions about technology diffusion by demonstrating that digital transformation requires not just technical solutions but careful attention to the social infrastructure of change. Our reading of the UK’s 2025 Industrial Strategy suggests growing policy recognition of these principles, though significant implementation challenges remain. The paper contributes to place-based development theory while offering practical insights for policymakers seeking to accelerate manufacturing innovation in local economies.
Broadhurst et al. (Tue,) studied this question.