Ministers have failed to get to the root cause of British manufacturing failure, the paper warned.
The sector suffers from broken supply chains according to the Rebalancing the Economy (Or Buyer's Remorse) study.
The fragmented supply chain limits manufacturing growth and means survival often rests on distant decisions by large overseas firms, the report said.
Authors urged tax privileges for manufacturing to counter the difficulties.
Proposesd remedies include output and value added promotion, tax relief on UK manufacturing investment and tax incentives for firms creating apprenticeships.
The study was written by Julie Froud, Adam Leaver and Karel Williams (ESRC Centre for Researchon Socio-Cultural Change (CRESC) University of Manchester), John Law (CRESC at the Open University), and Sukhdev Johal (Royal Holloway, University of London).
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