British manufacturers are lagging behind global leaders in robotics and artificial intelligence, and bridging the gap could boost the economy by £150 billion over the next decade, according to a new report.

Make UK, the trade body, is calling on the government to introduce a “simple one-stop-shop” for small and medium-sized enterprises (SMEs) to deliver funding, training and innovation support to close the gap with countries such as South Korea and Singapore.

Over the past decade the UK has fallen from second in a global innovation index to fifth place, according to the report, which was produced with Sage, the business software provider. It found that the UK has only 112 industrial robots per 10,000 workers, half the European Union average. Britain came 24th in the global robotics density index.

The government this summer launched its industrial strategy, which it hopes will kick start the sluggish economy. Advanced manufacturing is one of eight sectors prioritised under the strategy and it includes plans to “develop a dynamic and digitally literate workforce, with a new generation of tech adopters”.

It has also launched an industry partnership with giant American tech companies including Nvidia, Google and Microsoft, to train 7.5 million British workers in essential AI skills by 2030 and plans to explore implementing the recommendations of the recent tech adoption review, which included creating an AI adoption hubs network.

However, Make UK warned that the country “simply can’t wait ten years for this to happen”. It is urging ministers to embed targeted funding for digital skills needed in manufacturing and engineering to accompany the existing £100 million that the government has already set aside for engineering skills.

Make UK is one of Britain’s so-called big five business lobby groups and its membership ranges from large multinationals such as Airbus, Siemens, Rolls-Royce and BAE Systems to thousands of SMEs.

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Seamus Nevin, the chief economist at Make UK, said smaller manufacturers are being held back from adopting new technologies by “fragmented support, complex funding systems and a lack of accessible, appropriate digital skills training”.

He added: “Other countries are accelerating ahead by putting smaller firms at the heart of national strategies … from South Korea to Switzerland, governments have created clear, SME-focused strategies that simplify innovation funding, offer long-term tax incentives, and ensure every business can access practical support.”

Adoption is stronger at big businesses. UK multinational companies are among the leading adopters of AI in Europe, according to a separate report from Accenture, the consultancy.

Almost half, 49 per cent, of UK firms have “scaled” at least one strategic AI initiative, compared with 43 per cent across Europe, a survey of 800 European companies with annual revenues greater than $1 billion found.

Nine in ten organisations reported that the financial returns from AI investments met or surpassed expectations, according to the research.

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